As an analysis, you follow Queensland Ltd, a company engaged in the manufacture and distribution of healthy snack foods. In the financial statements for the year ended 30 June, 2015, Queensland Ltd recorded depreciation expense on PPE of $785 million. The notes reveal that items of PPE were estimated as having useful lives between 20 and 40 years.

Required

As an analyst, you would like to use a more conservative approach to depreciation. You have assessed that the useful lives of the assets are more likely to be between 15 and 30 years.

(a) What is your revised estimate of depreciation expense for the year?

(b) Provide the journal entries needed to "undo" this accounting distortions.