Tedesco Company changed depreciation methods in 2020 from double-declining balance to straight-line. Depreciation prior to 2020 under

Question:

Tedesco Company changed depreciation methods in 2020 from double-declining balance to straight-line. Depreciation prior to 2020 under double-declining-balance was $90,000, whereas straight-line depreciation prior to 2020 would have been $50,000. Tedesco’s depreciable assets had a cost of $250,000 with a $40,000 salvage value, and an 8-year remaining useful life at the beginning of 2020. Prepare the 2020 journal entries, if any, related to Tedesco’s depreciable assets.

Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...

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