Assume ABC Inc. purchased machinery for $350,000 and depreciated it on a straight-line basis over 20 years. The estimated residual value was zero. After using the machinery for 3 years, the company realized it will remain useful for only 5 more years and also revised the residual value to $12,000. Journalize entries to record the revised depreciation expense.

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The Answer of Assume ABC Inc. purchased machinery for $350,000 and depreciated it on a straight-line basis over 20 years. The estimated residual value was zero. After using the machinery for 3 years, the company realized it will remain useful for only 5 more years and also revised the residual value to $12,000. Journalize entries to record the revised depreciation expense.