Exercise 20-11 (Algo) Change in depreciation methods [LO20-3]
The Canliss Milling Company purchased machinery on January 2,
2019, for $830,000. A five-year life was estimated and no residual
value was anticipated. Canliss decided to use the straight-line
depreciation method and recorded $166,000 in depreciation in 2019
and 2020. Early in 2021, the company changed its depreciation
method to the sum-of-the-years’-digits (SYD) method.
Required:
2. Prepare any 2021 journal entry related to the
change. (If no entry is required for a
transaction/event, select "No journal entry required" in the first
account field.)
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