Crane Corp. changed from the straight-line method to the double-declining-balance method in 2021 on all its equipment.
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Question:
Crane Corp. changed from the straight-line method to the double-declining-balance method in 2021 on all its equipment. There was no change in the salvage values or useful lives. The equipment was purchased in 2020, and the original cost was $531,000 with no salvage value and a 6-year estimated useful life. Income before depreciation expense was $624,000 in 2020 and $866,000 in 2021. Crane's tax rate is 20%.
Prepare the journal entry to record depreciation expenses in 2021.
Related Book For
Intermediate Accounting
ISBN: 978-1118147290
15th edition
Authors: Donald E. Kieso, Jerry J. Weygandt, and Terry D. Warfield
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