Question: Guh Co. changed from the straight-line method to the double-declining-balance method in 2020 on all its equipment. There was no change in the salvage values

Guh Co. changed from the straight-line method to the double-declining-balance method in 2020 on all its equipment. There was no change in the salvage values or useful lives. The equipment was purchased in 2019, and the original cost was $558,000 with no salvage value and a 6-year estimated life. Income before depreciation expense was $566,000 in 2019 and $669,000 in 2020. Guh's tax rate is 20%.

a) Prepare the journal entry to record depreciation in 2020.

b) Starting with income before depreciation expense, prepare the remaining portion of the income statement for 2019 and 2020.

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