Collins Corporation purchased office equipment at the beginning of 2019 and capitalized a cost of $2,000,000. This cost figure included the following expenditures: 

Purchase price.................................$1,850,000 

Freight charges........................................30,000 

Installation charges................................20,000 

Annual maintenance charge............100,000 

Total.....................................................$2,000,000 

The company estimated an eight-year useful life for the equipment. No residual value is anticipated. The double-declining-balance method was used to determine depreciation expense for 2019 and 2020. 

In 2021, after the 2020 financial statements were issued, the company decided to switch to the straight-line depreciation method for this equipment. At that time, the company’s controller discovered that the original cost of the equipment incorrectly included one year of annual maintenance charges for the equipment. 

Required: 

1. Ignoring income taxes, prepare the appropriate correcting entry for the equipment capitalization error discovered in 2021. 

2. Ignoring income taxes, prepare any 2021 journal entry(s) related to the change in depreciation methods.