Wardell Company purchased a mini computer on January 1, 2016, at a cost of $39,150. The computer has been depreciated using the straight-line method over an estimated five-year useful life with an estimated residual value of $3,900. On January 1, 2018, the estimate of useful life was changed to a total of 10 years, and the estimate of residual value was changed to $930.
1. Prepare the appropriate adjusting entry for depreciation in 2018 to reflect the revised estimate.
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2. Prepare the appropriate adjusting entry for depreciation in 2018 to reflect the revised estimate. Assuming that the company uses the sum-of-the-years’-digits method instead of the straight-line method.