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Business, 02.04.2021 19:40 janayshas84

For financial reporting, Clinton Poultry Farms has used the declining-balance method of depreciation for conveyor equipment acquired at the beginning of 2018 for $2,750,000. Its useful life was estimated to be five years, with a $155,000 residual value. At the beginning of 2021, Clinton decides to change to the straight-line method. The effect of this change on depreciation for each year is as follows:. ($ in thousands)
Year Straight Line Declining Balance Difference
2018 $ 548 $ 1,200 $ 652
2019 548 720 172
2020 548 432 (116 )
$ 1,644 $ 2,352 $ 708
Required:
Prepare any 2021 journal entry related to the change.

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For financial reporting, Clinton Poultry Farms has used the declining-balance method of depreciation...

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