The fact that generally accepted accounting principles allow companies flexibility in choosing between certain allocation methods can make it difficult for a financial analyst to compare periodic performance from firm to firm.

Suppose you were a financial analyst trying to compare the performance of two companies. Company A uses the double-declining-balance depreciation method. Company B uses the straight-line method. You have the following information taken from the 12/31/18 year-end financial statements for Company B:

Income StatementDepreciation expense$15,000

Balance SheetAssets:Plant and equipment, at cost$300,000Less: Accumulated depreciation(60,000)Net$240,000

You also determine that all of the assets constituting the plant and equipment of Company B were acquired at the same time, and that all of the $300,000 represents depreciable assets. Also, all of the depreciable assets have the same useful life and residual values are zero.

Required:

1.In order to compare performance with Company A, estimate what B's depreciation expense would have been for 2015 through 2018 if the double-declining-balance depreciation method had been used by Company B since acquisition of the depreciable assets.

2.If Company B decided to switch depreciation methods in 2018 from the straight line to the double-declining-balance method, prepare the 2018 journal entry to record depreciation for the year, assuming no journal entry for depreciation in 2018 has yet been recorded.