On January 1,20x1,DB purchased equipment that cost $48,000.It was depreciated on the straight-line basis for the years 20x1,20x2 and 20x3 (estimated useful life 5 years and no residual value).During early 20x4,DB changed the estimated total useful life to 7 years and the residual value to $3,200 at the end of year 7.
(a)Give any entry required during 20x4 by DB to reflect the change.If none is required,explain why.
(b)Give the adjusting journal entry required on December 31,20x4.

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The Answer of On January 1,20x1,DB purchased equipment that cost $48,000.It was depreciated on the straight-line basis for the years 20x1,20x2 and 20x3 (estimated useful life 5 years and no residual value).During early 20x4,DB changed the estimated total useful life to 7 years and the residual value to $3,200 at the end of year 7.
(a)Give any entry required during 20x4 by DB to reflect the change.If none is required,explain why.
(b)Give the adjusting journal entry required on December 31,20x4.

On January 1,20x1,DB Purchased Equipment That Cost $48,000