Ivanhoe Corporation decided at the beginning of 2023 to change from the declining-balance method of depreciating...

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Ivanhoe Corporation decided at the beginning of 2023 to change from the declining-balance method of depreciating its capital assets to the straight-line method because the straight-line method better represents the pattern of benefits provided by the capital assets. For years prior to 2023, total depreciation expense under the two methods was as follows: declining-balance, $227,000, and straight- line, $114,000. The tax rate is 30%. Ivanhoe follows ASPE, and the taxes payable method of accounting for income taxes. Prepare Ivanhoe's 2023 journal entry, if any, to record the change in estimate. (List debit entry before credit entry. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Account Titles and Explanation Toutl di. Debit Credit Indicate the effect-Understated, Overstated, or No Effect-that each of the following errors has on 2022 net income and 2023 net income: Wages payable were not recorded at Dec. 31, 2022. Equipment purchased in 2021 was expensed. Equipment purchased in 2022 was expensed. Ending inventory at Dec. 31, 2022, was overstated. Patent amortization was not recorded in 2023. 2022 > 2023 > Ivanhoe Corporation decided at the beginning of 2023 to change from the declining-balance method of depreciating its capital assets to the straight-line method because the straight-line method better represents the pattern of benefits provided by the capital assets. For years prior to 2023, total depreciation expense under the two methods was as follows: declining-balance, $227,000, and straight- line, $114,000. The tax rate is 30%. Ivanhoe follows ASPE, and the taxes payable method of accounting for income taxes. Prepare Ivanhoe's 2023 journal entry, if any, to record the change in estimate. (List debit entry before credit entry. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Account Titles and Explanation Toutl di. Debit Credit Indicate the effect-Understated, Overstated, or No Effect-that each of the following errors has on 2022 net income and 2023 net income: Wages payable were not recorded at Dec. 31, 2022. Equipment purchased in 2021 was expensed. Equipment purchased in 2022 was expensed. Ending inventory at Dec. 31, 2022, was overstated. Patent amortization was not recorded in 2023. 2022 > 2023 >

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