Gerald Englehart Industries changed from the double-declining-balance to the straight-line method in 2021 on all its equipment. There was no change in the assets salvage values or useful lives. Plant assets, acquired on January 2, 2018, had an original cost of $1,600,000, with a $100,000 salvage value and an 8-year estimated useful life. Income before depreciation expense was $270,000 in 2020 and $300,000 in 2021.

A. Prepare the journal entry to record depreciation expense in 2021.

B. Starting with income before depreciation expense, prepare the remaining portion of the income statement for 2020 and 2021.

	2021	2020
Income before depreciation expense	$300,000	$270,000
Depreciation expense	115,000	?
Net Income	185,000	?