Irwin, Inc., constructed a machine at a total cost of $35 million. Construction was completed at the end of 2014and the machine was placed in service at the beginning of 2015. The machine was being depreciated over a10-year life using the sum-of-the-years’-digits method. The residual value is expected to be $2 million. At thebeginning of 2018, Irwin decided to change to the straight-line method. Ignoring income taxes, what journalentry(s) should Irwin record relating to the machine for 2018?
Irwin, Inc., constructed a machine at a total cost of $35 million. Construction was completed at the end of 2014and the machine was placed in service at the beginning of 2015. The machine was being depreciated over a10-year life using the sum-of-the-years’-digits method. The residual value is expected to be $2 million. At thebeginning of 2018, Irwin decided to change to the straight-line method. Ignoring income taxes, what journalentry(s) should Irwin record relating to the machine for 2018?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Irwin, Inc., constructed a machine at a total cost of $35 million. Construction was completed at the end of 2014
and the machine was placed in service at the beginning of 2015. The machine was being
10-year life using the sum-of-the-years’-digits method. The residual value is expected to be $2 million. At the
beginning of 2018, Irwin decided to change to the straight-line method. Ignoring income taxes, what journal
entry(s) should Irwin record relating to the machine for 2018?
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