A company purchased machinery on January 2, Year 1, for $980,000. A five-year life was estimated...

Transcribed Image Text:

A company purchased machinery on January 2, Year 1, for $980,000. A five-year life was estimated and no residual value was anticipated. The company decided to use the straight-line depreciation method and recorded $196,000 in depreciation in Year 1 and Year 2. Early in Year 3, the company changed its depreciation method to the sum-of-the-years'-digits (SYD) method. Required: 1. Will the company apply the SYD method retrospectively or apply the method prospectively? 2. Prepare any Year 3 journal entry related to the change. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Will the company apply the SYD method retrospectively or apply the method pr The company will apply the SYD method Required 1 Required 2 A company purchased machinery on January 2, Year 1, for $980,000. A five-year life was estimated and no residual value was anticipated. The company decided to use the straight-line depreciation method and recorded $196,000 in depreciation in Year 1 and Year 2. Early in Year 3, the company changed its depreciation method to the sum-of-the-years'-digits (SYD) method. Required: 1. Will the company apply the SYD method retrospectively or apply the method prospectively? 2. Prepare any Year 3 journal entry related to the change. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Will the company apply the SYD method retrospectively or apply the method pr The company will apply the SYD method Required 1 Required 2