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Machinery purchased for $51,200 by Flint Corp. on January 1, 2012, was originally estimated to have an 8-year useful life with a residual value of $4,000. Depreciation has been entered for five years on this basis. In 2017, it is determined that the total estimated useful life (including 2017) should have been 10 years, with a residual value of $5,000 at the end of that time. Assume straight-line depreciation and that Flint Corp. uses IFRS for financial statement purposes.
Problem 1: Prepare the entry to record depreciation for 2017. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 5,275.)
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