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The Peridot Company purchased machinery on January 2, 2009, for $800,000. A five-year life was estimated and no residual value was anticipated. Peridot decided to use the straight-line depreciation method and recorded $160,000 in depreciation in 2009 and 2010. Early in 2011, the company revised the total estimated life of the machinery to eight years.
Required:
1. What type of change is this?2. Briefly describe the accounting treatment for this change.3. Determine depreciation for 2011.
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