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12 During 2019 and 2020, Faulkner Manufacturing used the sum-of-the-years'-digits (SYD) method of depreciation for its depreciable assets, for both financial reporting and tax purposes.
12 During 2019 and 2020, Faulkner Manufacturing used the sum-of-the-years'-digits (SYD) method of depreciation for its depreciable assets, for both financial reporting and tax purposes. At the beginning of 2021, Faulkner decided to change to the straight-line method for both financial reporting and tax purposes. A tax rate of 25% is in effect for all years. 3.46 points For an asset that cost $13,000 with an estimated residual value of $1,000 and an estimated useful life of 10 years, the depreciation under different methods is as follows: 8 03:23:30 Year 2019 2020 Straight Line $1,200 1,200 $ 2,400 SYD Difference $2,182 $ 982 1,964 764 $ 4,146 $1,746 eBook Print Required: 1. Prepare the journal entry that Faulkner will record in 2021 related to the change. 2. Suppose instead that Faulkner previously used straight-line depreciation and changed to sum-of-the-years'- digits in 2021. Prepare the journal entry that Faulkner will record in 2021 related to the change. 12 Requireu. 1. Prepare the journal entry that Faulkner will record in 2021 related to the change. 2. Suppose instead that Faulkner previously used straight-line depreciation and changed to sum-of-the-years'- digits in 2021. Prepare the journal entry that Faulkner will record in 2021 related to the change. 3.46 points Complete this question by entering your answers in the tabs below. 8 03:23:15 Required 1 Required 2 Prepare the journal entry that Faulkner will record in 2021 related to the change. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your final answers to nearest whole dollar.) eBook View transaction list Print Journal entry worksheet Record the 2021 depreciation adjusting entry. Note: Enter debits before credits. Event General Journal Debit Credit 1 Record entry Clear entry View general journal Check my 12 requireu. 1. Prepare the journal entry that Faulkner will record in 2021 related to the change. 2. Suppose instead that Faulkner previously used straight-line depreciation and changed to sum-of-the-years'- digits in 2021. Prepare the journal entry that Faulkner will record in 2021 related to the change. 3.46 points Complete this question by entering your answers in the tabs below. 8 03:22:59 Required 1 Required 2 eBook Suppose instead that Faulkner previously used straight-line depreciation and changed to sum-of-the-years'- digits in 2021. Prepare the journal entry that Faulkner will record in 2021 related to the change. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Round your final answers to nearest whole dollar.) View transaction list Print Journal entry worksheet Record the 2021 depreciation adjusting entry. Note: Enter debits before credits. Event General Journal Debit Credit 1
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