During 2011 and 2012, 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 2013, Faulkner decided to change to the straight-line method for both financial reporting and tax purposes. A tax rate of 40% is in effect for all years.

For an asset that cost $21,000 with an estimated residual value of $1,000 and an estimated useful life of 10 years, the depreciation under different methods is as follows:

Year	Straight Line		SYD		Difference
2011	$2,000		$3,636		$1,636
2012	2,000		3,273		1,273
	$4,000		$6,909		$2,909

1. 2.

Prepare the journal entry that Faulkner will record in 2013 related to the change. (If no entry is required for a particular event, select "No journal entry required" in the first account field.) Suppose instead that Faulkner previously used straight-line depreciation and changed to sum-of-the-years- digits in 2013. Prepare the journal entry that Faulkner will record in 2013 related to the change.(If no entry is required for a particular event, select "No journal entry required" in the first account field.)