Question
The Canliss Milling Company purchased machinery on January 2, 2022, for $880,000. A five-year life was estimated and no residual value was anticipated. Canliss decided
The Canliss Milling Company purchased machinery on January 2, 2022, for $880,000. A five-year life was estimated and no residual value was anticipated. Canliss decided to use the straight-line depreciation method and recorded $176,000 in depreciation in 2022 and 2023. Early in 2024, the company changed its depreciation method to the sum-of-the-years'-digits (SYD) method.
Required:
- Will Canliss apply the SYD method retrospectively or apply the method prospectively?
- Prepare any 2024 journal entry related to the change.
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Managerial Accounting Tools for business decision making
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
6th Edition
978-0470477144, 1118096894, 9781118214657, 470477148, 111821465X, 978-1118096895
