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Pearl Corporation changed from Double-declining balance method of depreciation to sum of years digits method of depreciation in 2018. The change affects its machinery purchased
Pearl Corporation changed from Double-declining balance method of depreciation to sum of years digits method of depreciation in 2018. The change affects its machinery purchased at the end of 2015 at a cost of $100 million. The machine has an expected useful life of six years and an estimated residual value of $2 million. What is the annual depreciation chargeable in the new method and pass the journal entry for 2018.
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