Chapter 11, Problem 11.23E

Change in principle; change in depreciation methods

• LO11–2, LO11–6

Alteran Corporation purchased office equipment for $1.5 million in 2015. The equipment is being depreciated over a 10-year life using the sum-of-the-years’-digits method. The residual value is expected to be $300,000. At the beginning of 2018, Alteran decided to change to the straight-line depreciation method for this equipment.

Required:

Prepare the journal entry to record depreciation for 2018.