For financial reporting, Clinton Poultry Farms has used the declining-balance method of depreciation for conveyor equipment acquired at the beginning of 2015 for $2,560,000. Its useful life was estimated to be six years,with a $160,000 residual value. At the beginning of 2018, Clinton decides to change to the straight-line method.The effect of this change on depreciation for each year is as follows:($ in thousands)Year Straight Line Declining Balance Difference2015 $ 400 $ 853 $4532016 400 569 1692017 400 379 (21)$1,200 $1,801 $601Required:1. Briefly describe the way Clinton should report this accounting change in the 2016–2018 comparative financial statements.2. Prepare any 2018 journal entry related to the change.

For financial reporting, Kumas Poultry Farms has used the declining-balance method of depreciation for conveyor equipment acquired at the beginning of 2021 for $2,832,000. Its useful life was estimated to be six years with a $228,000 residual value. At the beginning of 2024, Kumas decides to change to the straight-line method. The effect of this change on depreciation for each year is as follows: Year ($ in thousands) Straight-Line Declining Balance Difference 2021 $ 434 $ 944 $ 510 2022 434 629 195 2023 434 420 (14)   $ 1,302 $ 1,993 $ 691 Required: 2. Prepare any 2024 journal entry related to the change. Note: Enter you answers rounded to the nearest dollar. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.

On August 1, 2015, Toy inc. purchosed a new piece of equipment that cost$25000. The estimoted useful ife is five years and the estimated residual value is 52,500 . During the five years of useful life the equpment is expected to produce 10.000 units. If the company uses the double declining bolance method of depreciation, what is the depreciation expense for the yeat ended December 31 , 2016 ? Mutiple Croice $15,000 $5,400 $8,333 $6,000 None of the other atfenatives aro correct

(Error and Change in Estimate—Depreciation) Joy Cunningham Co. purchased a machine on January 1, 2015, for $550,000. At that time, it was estimated that the machine would have a 10-year life and no salvage value. On December 31, 2018, the firm’s accountant found that the entry for depreciation expense had been omitted in 2016. In addition, management has informed the accountant that the company plans to switch to straight-line depreciation, starting with the year 2018. At present, the company uses the sum-of-the-years’-digits method for depreciating equipment.InstructionsPrepare the general journal entries that should be made at December 31, 2018, to record these events. (Ignore tax effects.)

The following transactions occurred during 2020. Assume that depreciation of 10% per year is charged on all machinery and 5% per year on buildings, on a straight-line basis, with no estimated salvage value. Depreciation is charged for a full year on all fixed assets acquired during the year, and no depreciation is charged on fixed assets disposed of during the year. A building that cost $168,960 in 2003 is torn down to make room for a new building. The wrecking contractor was paid $6,528 and was permitted to keep all materials salvaged. Jan. 30 Machinery that was purchased in 2013 for $20,480 is sold for $3,712 cash, f.o.b. purchaser's plant. Freight of $384 is paid on the sale of this machinery. Mar. 10 Mar. 20 A gear breaks on a machine that cost $11,520 in 2012. The gear is replaced at a cost of $2,560. The replacement does not extend the useful life of the machine but does make the machine more efficient. A special base installed for a machine in 2014 when the machine was purchased…

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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 $2,816,000. Its useful life was estimated to be six years with a $224,000 residual value. At the beginning of 2021, Clinton decides to change to the straight-line method. The effect of this change on depreciation for each year is as follows:    ($ in thousands) Year Straight-Line Declining Balance Difference 2018   $ 432     $ 938     $ 506     2019     432       626       194     2020     432       417       (15 )       $ 1,296     $ 1,981     $ 685          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.)

On July 2, 2013, Sable Company purchased a building for $300,000 that had an estimated residual value of $46,000 and an expected useful life of ten years. Sable Company has a December 31st, year end. If Sable Company uses the Declining Balance Method at the straight-line rate, the depreciation expense for year two is: $27000, $28500, $25400, $30000, or none of the above

At the beginning of 2016, Foley Airline purchased a used airplane at a cost of $33,500,000. Foley Airline expects the plane to remain useful for eight years (4,000,000 miles) and to have a residual value of $5,500,000. Foley Airline expects the plane to be flown 1,300,000 miles the first year and 1,200,000 miles the second year. Requirements 1. Compute second-year (2017) depreciation expense on the plane using the following methods: a. Straight-line b. Units-of-production c. Double-declining-balance 2. Calculate the balance in Accumulated Depreciation at the end of the second year for all three methods. Requirement 1a. Compute second-year (2017) depreciation expense on the plane using the straight-line method. Begin by selecting the formula to calculate the company's second-year depreciation expense on the plane using the straight-line method. Then enter the amounts and calculate the depreciation expense for the second year. Straight-line depreciation

On January 1, 2018, the Allegheny Corporation purchased machinery for $150,000. The estimated service life of the machinery is 10 years and the estimated residual value is $7,000. The machine is expected to produce 300,000 units during its life. Required: Calculate depreciation for 2018 and 2019 using each of the following methods. 1. Straight line. 2. Sum-of-the-years'-digits. 3. Double-declining balance. 4. One hundred fifty percent declining balance. 5. Units of production (units produced in 2018, 41,000; units produced in 2019, 36,000). Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Calculate depreciation for 2018 and 2019 using sum-of-the-years' digits. 2018 2019 Sum-of-the-years' digits depreciation Rate per Year Depreciable Base X X X = = Required 5 Depreciation Expense