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Cullumber Enterprises Ltd. purchased machinery on September 1, 2017. The machinery cost $340,300, and was estimated to have a 10-year useful life and a residual value of $40,300. Straight-line depreciation was recorded each year-end (December 31) to the end of December 31, 2021. On January 1, 2022, Cullumber re-evaluated the machinery. It was now believed that the equipment could be resold for $13,500 on at the end of its useful life (and the end of its useful life was now expected to be December 31, 2024).
Required
Problem 1: Prepare the journal entry to record depreciation expense for 2022. Show details of all calculations.
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