Question
Exercise 20-11 Change in depreciation methods [LO20-3] The Canliss Milling Company purchased machinery on January 2, 2016, for $800,000. A five-year life was estimated and
Exercise 20-11 Change in depreciation methods [LO20-3]
The Canliss Milling Company purchased machinery on January 2, 2016, for $800,000. A five-year life was estimated and no residual value was anticipated. Canliss decided to use the straight-line depreciation method and recorded $160,000 in depreciation in 2016 and 2017. Early in 2018, the company changed its depreciation method to the sum-of-the-years-digits (SYD) method. Required: 2. Prepare any 2018 journal entry related to the change. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
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