Exercise 20-10 (Algo) Change in depreciation methods [LO20-3]

For financial reporting, Clinton Poultry Farms has used the declining-balance method of depreciation for conveyor equipment acquired at the beginning of 2018 for $2,656,000. Its useful life was estimated to be six years with a $184,000 residual value. At the beginning of 2021, Clinton decides to change to the straight-line method. The effect of this change on depreciation for each year is as follows:

	($ in thousands)
Year	Straight-Line				Declining Balance				Difference
2018		$	412			$	885			$	473
2019			412				590				178
2020			412				394				(18	)
		$	1,236			$	1,869			$	633

Required: 2. Prepare any 2021 journal entry related to the change. (Enter your answers in dollars rounded to the nearest thousand. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Record the adjusting entry for depreciation in 2021. Note: Enter debits before credits. Event General Journal Debit Credit