Pinnacle Corporation has been using the straight-line depreciation method to depreciate some office equipment that was acquired at the beginning of 2021. At the beginning of 2024, Pinnacle decided to change to the double-declining-balance method. The equipment cost $120,000 and is expected to have no salvage value. The estimated useful life of the equipment is five years. The tax rate is 25%.
Pinnacle Corporation has been using the straight-line depreciation method to depreciate some office equipment that was acquired at the beginning of 2021. At the beginning of 2024, Pinnacle decided to change to the double-declining-balance method. The equipment cost $120,000 and is expected to have no salvage value. The estimated useful life of the equipment is five years. The tax rate is 25%.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Pinnacle Corporation has been using the straight-line depreciation method to depreciate some office equipment that was acquired at
the beginning of 2021. At the beginning of 2024, Pinnacle decided to change to the double-declining-balance method. The equipment
cost $120,000 and is expected to have no salvage value. The estimated useful life of the equipment is five years. The tax rate is 25%.
Required:
Prepare the journal entry, if any, to record the accounting change at the beginning of 2024.
Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field.
View transaction list
Journal entry worksheet
1
Record the accounting change at the beginning of 2024.
Note: Enter debits before credits.
Event
1
General Journal
Accumulated depreciation
Accumulated depreciation
Debit
Credit
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