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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

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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. For an asset that cost $15,100 with an estimated residual value of $1100 and an estimated useful life of 10 years, the depreciation under different methods is as follows: Year 2019 2020 Straight Line $1,400 1,40e SYO $2,545 Difference $1,145 $2,800 $4,836 12,35 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. Complete this question by entering your answers in the tabs below. 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 dollars) View transaction list View journal entry worksheet General Journal Event Debit Credit Depreciation expense Acumulated depreciation 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. For an asset that cost $15,100 with an estimated residual value of $1,100 and an estimated useful life of 10 years, the depreciation under different methods is as follows: Straight Line Year 2019 2020 $1,489 Difference $1.145 1,40e SYD $2,545 2,291 $4,836 $ 2, see $2,836 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. Complete this question by entering your answers in the tabs below. Required 1 Required 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. (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 View journal entry worksheet No Event General Journal Debit Credit Depreciation expense Accumulated depreciation

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