A company purchased machinery on January 2 , Year 1 , for $880,000. A five-year life was estimated and no residual value was anticipated. The company decided to use the straight-line depreciation method and recorded $176,000 in depreciation in Year 1 and Year 2. Early in Year 3, the company changed its depreciation method to the sum-of-the-years'-digits (SYD) method. Required: 1. Will the company apply the SYD method retrospectively or apply the method prospectively? 2. Prepare any Year 3 journal entry related to the change. Complete this question by entering your answers in the tabs below. Will the company apply the SYD method retrospectively or apply the method prospectively? A company purchased machinery on January 2 , Year 1 , for $880,000. A five-year life was estimated and no residual value was anticipated. The company decided to use the straight-line depreciation method and recorded $176,000 in depreciation in Year 1 and Year 2. Early in Year 3, the company changed its depreciation method to the sum-of-the-years'-digits (SYD) method. Required: 1. Will the company apply the SYD method retrospectively or apply the method prospectively? 2. Prepare any Year 3 journal entry related to the change. Complete this question by entering your answers in the tabs below. Prepare any Year 3 journal entry related to the change. Note: If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Journal entry worksheet Record the adjusting entry for depreciation in Year 3. Note: Enter debits before credits