Willow Corporation decided at the beginning of 2014 to change from the declining-balance method of depreciating its

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Willow Corporation decided at the beginning of 2014 to change from the declining-balance method of depreciating its capital assets to the straight-line method because the straight-line method better represents the pattern of benefits provided by the capital assets. For years prior to 2014, total depreciation expense under the two methods was as follows: declining balance, $155,000; and straight-line, $60,000. The tax rate is 30%. Willow follows ASPE, and the taxes payable method of accounting for income taxes. Prepare Willow's 2014 journal entry, if any, to record the change in estimate. Explain your answers.
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Intermediate Accounting

ISBN: 978-1118300855

10th Canadian Edition Volume 2

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield, Nicola M. Young, Irene M. Wiecek, Bruce J. McConomy

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