Effective 1/1/21, the company will change its method for calculating depreciation from the double-declining balance method to the straight-line method for its factory building. As of 1/1/21, the building has a net book value of $800,000, a remaining useful life of 20 years, and an expected salvage value of $100,000. If straight-line depreciation had been used all along, the net book value of the factory building would have been $1,000,000 on 1/1/21.

What entry will the company record on its opening balance sheet of 1/1/21 (if any), and what adjusting journal entry will be recorded on 12/31/21 (if any)? Not all lines are necessarily used. If no JE is required on 1/1/21 or 12/31/21, clearly indicate this by writing no JE required.

Opening Balance Sheet Journal Entry on 1/1/21 (4 points):

Account Title	Debt	Credit

Adjusting Journal Entry to Record on 12/31/21 (4 points):

Account Title	Debt	Credit