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During 2016 and 2017, 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

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During 2016 and 2017, 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 2018, 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, ts 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: EBook Year 2016 2017 Print Straight Line $2,800 2, $4, SYD $3,636 3,273 $ 6,909 Difference $1,636 1,273 $ 2,909 erences Required 1. Prepare the journal entry that Faulkner will record in 2018 related to the change 2. Suppose instead that Faulkner previously used straight-line depreciation and changed to sum-of-the-years'- digits in 2018. Prepare the journal entry that Faulkner will record in 2018 related to the change. Complete this question by entering your answers in the tabs below

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