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Question - KSR Corp. purchased a large piece of factory equipment for $950,000 on January 1, 2014. KSR uses straight line depreciation and originally estimated the equipment to have a useful life of 15 years and that it would be worth $50,000 at the end of its useful life. Depreciation has been recorded through the end of calendar year 2017. In January 2018, it is determined that the original total estimated life should have been 10 years with a salvage value of $80,000 at the end of that time.
Required - Prepare the entry for depreciation of the equipment for 2018.
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