Intermediate Accounting
9th Edition
ISBN: 9781259722660
Author: J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher: McGraw-Hill Education
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Textbook Question
Chapter 20, Problem 20.10E
Change in
• LO20–3
For financial reporting, Clinton Poultry Farms has used the declining-balance method of depreciation for conveyor equipment acquired at the beginning of 2015 for $2,560,000. Its useful life was estimated to be six years with a $160,000 residual value. At the beginning of 2018, Clinton decides to change to the straight-line method. The effect of this change on depreciation for each year is as follows:
Required:
- 1. Briefly describe the way Clinton should report this accounting change in the 2017–2018 comparative financial statements.
- 2. Prepare any 2018
journal entry related to the change.
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Chapter 20 Solutions
Intermediate Accounting
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