Answer
No entry will be required as we will depreciate the machinery for the rest of the life.
It is mentioned that machine has been depreciated already for 5 years so book value after 5 years will be:
Depreciation per year = (Cost – Salvage Value) / No. of years
= ($70,200 – 4,680) / 8 Years
Depreciation per year = $8,190
Book Value = Cost – Depreciation for 5 years
= $70,200 – (8,190 * 5)
Book Value after 5 years = $29,250
And
Now it is mentioned that new life is 10 years and new salvage value is $5,265,
The machine is already has been depreciated for 5 years so now the remaining life is 5 years, so we will calculate new depreciation per year
New Depreciation per year = (Book Value – New Salvage Value) / Remaining life
= ($29,250 – 5,265) / 5 Years
New Depreciation per year = $4,797
Conclusion
There is no need for Adjustment entry as we will depreciate the remaining value for remaining period.
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