Prepare the journal entry to record the annual depreciation for the year

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Prepare the journal entry to record the annual depreciation for the year

Garrison Company purchased a machine on January 2, 2011. The machine cost $80,000 and had an estimated residual value of $20,000. The estimated useful life of the machine was 10 years. On January 1, 2014, due to technological innovations, the estimated useful life was reduced by 2 years from the original life and the salvage value was changed to $6,000. The company uses straight-line depreciation. You may ignore taxes. Prepare the journal entry to record the annual depreciation for the year ended December 31, 2014 and any prior period adjustments which may be necessary.

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