On January 1, 2016, Dawn Company bought a machine for $60,000. It was then estimated that the useful life of the machine would be eight years with a salvage value of $8,000. On January 1, 2020, it was decided that the machine's total life from acquisition date should have been only six years with a salvage value of only $2,000. The company used straight-line depreciation.
Required:
a. If an adjusting entry is necessary on January 1, 2020, prepare it.
b. Compute depreciation expense for 2020.

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The Answer of On January 1, 2016, Dawn Company bought a machine for $60,000. It was then estimated that the useful life of the machine would be eight years with a salvage value of $8,000. On January 1, 2020, it was decided that the machine's total life from acquisition date should have been only six years with a salvage value of only $2,000. The company used straight-line depreciation.
Required:
a. If an adjusting entry is necessary on January 1, 2020, prepare it.
b. Compute depreciation expense for 2020.

On January 1, 2016, Dawn Company Bought a Machine for $60,000