During 2021, XYZ Inc. changed from using the revaluation model back to the cost method of recording its manufacturing plant purchased back in 2019. Assume this is considered a change in accounting policy. The following calculations present amortization expense under both models. As XYZ records its 2021 amortization during the year, amortization expense has been recorded for 2021.

Prepare the required adjustments in 2021

2021 2020 2019

Amortization expense Cost method $40,000 $40,000 $40,000

Amortization expense Revaluation method $70,000 $60,000 $50,000