A company purchased machinery on January 2, Year 1, for $820,000. A five-year life was estimated and no residual value was anticipated. The company decided to use the straight-line depreciation method and recorded $164,000 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. Required 1 Will the company apply the SYD method retrospectively or apply the method prospectively? The company will apply the SYD method A company purchased machinery on January 2, Year 1 , for $820,000. A five-year life was estimated and no residual value was anticipated. The company decided to use the straight-line depreciation method and recorded $164,000 in depreclation 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. WIII 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 1 Record the adjusting entry for depreciation in Year 3. Note: Enter debits before credits