For financial reporting, Clinton Poultry Farms has used the declining-balance method of depreciation for conveyor equipment...

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For financial reporting, Clinton Poultry Farms has used the declining-balance method of depreciation for conveyor equipment acquired at the beginning of 2018 for $2,880,000. Its useful life was estimated to be six years with a $240,000 residual value. At the beginning of 2021, Clinton decides to change to the straight-line method. The effect of this change on depreciation for each year is as follows: ($ in thousands) Declining Balance Difference Straight-Line $ 440 Year 2018 960 $520 2019 440 640 200 2020 440 427 (13) $1,320 $2,027 $707 Required: 2. Prepare any 2021 journal entry related to the change. (Enter your answers in dollars. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 <> Record the adjusting entry for depreciation in 2021. For financial reporting, Clinton Poultry Farms has used the declining-balance method of depreciation for conveyor equipment acquired at the beginning of 2018 for $2,880,000. Its useful life was estimated to be six years with a $240,000 residual value. At the beginning of 2021, Clinton decides to change to the straight-line method. The effect of this change on depreciation for each year is as follows: ($ in thousands) Declining Balance Difference Straight-Line $ 440 Year 2018 960 $520 2019 440 640 200 2020 440 427 (13) $1,320 $2,027 $707 Required: 2. Prepare any 2021 journal entry related to the change. (Enter your answers in dollars. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet 1 <> Record the adjusting entry for depreciation in 2021.

Answer rating: 100% (QA)

Net Book Value at 31December 2021 2880000 202... View the full answer