Change in Estimate Depreciation Frederick Industries changed from the double-declining balance to the straight-line method in 2010

Question:

Change in Estimate—Depreciation Frederick Industries changed from the double-declining balance to the straight-line method in 2010 on all its plant assets. There was no change in the assets’ salvage values or useful lives. Plant assets, acquired on January 2, 2007, had an original cost of $2,400,000, with a $100,000 salvage value and an 8-year estimated useful life. Income before depreciation expense was $370,000 in 2009 and $300,000 in 2010.

(a) Prepare the journal entry(ies) to record the change in depreciation method in 2010.

(b) Starting with income before depreciation expense, prepare the remaining portion of the income statement for 2009 and 2010.

Depreciation
Depreciation is an important concept in accounting. By definition, depreciation is the wear and tear in the value of a noncurrent asset over its useful life. In simple words, depreciation is the cost of operating a noncurrent asset producing... Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...