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Green Co. constructed a machine at a total cost of $77.80 million. Construction was completed at the end of 2014 and the machine was placed
Green Co. constructed a machine at a total cost of $77.80 million. Construction was completed at the end of 2014 and the machine was placed in service at the beginning of 2015. The machine was being depreciated over a 10-year life using the sum-of-the-years- digits method. The residual value is expected to be $4.60 million. At the beginning of 2018, Green decided to change to the straight- line method. Required: 1. Ignoring income taxes, what journal entry(s) should Green record relating to the machine for 2018? 2. Suppose Green has been using the straight-line method and switches to the sum-of-the-years'-digits method. Ignoring income taxes, what journal entry(s) should Green record relating to the machine for 2018? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Ignoring income taxes, what journal entry(s) should Green record relating to the machine for 2018? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 2 decimal places (i.e., 5,500,000 should be entered as 5.50).)
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