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 $30,000 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
2019		$	2,900		$	5,273			$	2,373
2020			2,900			4,745				1,845
		$	5,800		$	10,018			$	4,218

1. 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 dollar.)

• Record the 2021 depreciation adjusting entry

Event	General Journal	Debit	Credit
1

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.)

• Record the 2021 depreciation adjusting entry.

Event	General Journal	Debit	Credit
1