Business, 06.05.2020 01:58 ezequiel2k

For financial reporting, Clinton Poultry Farms has used the declining-balance method of depreciation for conveyor equipment acquired at the beginning of 2018 for $2,848,000. Its useful life was estimated to be six years with a $232,000 residual value. At the beginning of 2021, Clinton decides to change to the straight-line method. The effect of this change on depreciation for each year is as follows: ($ in thousands)

Year Straight-Line Declining Balance Difference
2018 $436 $949 $513
2019 436 633 197
2020 436 422 (14 )
$1,308 $2,004 $696

Required:
Prepare any 2013 journal entry related to the change.

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For financial reporting, Clinton Poultry Farms has used the declining-balance method of depreciation...

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