In 20X0, ABC company purchased machine for $300,000 that had a useful life of 5 years, with a salvage value of $50,000 at the end its life. Depreciation was calculated over 2 years on straight-line basis. In 20X2, it determined that the total life should be 10 years with the salvage value of $5,000 at the end its life.
1. Prepare the entry to correct the depreciation for 20X1.
2. Prepare the entry to record the depreciation for 20X2.
I know for the 2nd entry it should be Debit Dep Expense $24,375 and Credit Acc Depreciation $24,375. Just confused about the correcting entry in 20X1.