On January 1,2019,Williams Company,Inc.purchased machinery for $350,000 and depreciated it on a straight-line basis over 20 years.The estimated residual value was zero.On January 1,2022,the company realized the machine will remain useful for only 5 more years and also revised the residual value to $12,000.
Required:
1.What is the depreciation expense per year before the change in estimate?
2.What is the revised depreciation expense per year?
3.Prepare the adjusting journal entry for the year ending December 31,2022.Omit the explanation.

Question

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The Answer of On January 1,2019,Williams Company,Inc.purchased machinery for $350,000 and depreciated it on a straight-line basis over 20 years.The estimated residual value was zero.On January 1,2022,the company realized the machine will remain useful for only 5 more years and also revised the residual value to $12,000.
Required:
1.What is the depreciation expense per year before the change in estimate?
2.What is the revised depreciation expense per year?
3.Prepare the adjusting journal entry for the year ending December 31,2022.Omit the explanation.