Green Co. constructed a machine at a total cost of $76.50 million. Construction was completed at the end of 2012 and the machine was placed in service at the beginning of 2013. 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 $4.50 million. At the beginning of 2016, 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 2016? 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 2016?