JFS Co. changed from straight-line to double-declining-balance depreciation. The journal entry to record the change includes:
A) A credit to accumulated depreciation.
B) A debit to accumulated depreciation.
C) A debit to a depreciable asset.
D) The change does not require a journal entry.

Question

Quizplus · Accepted Answer

Changes in depreciation methods are accounted for prospectively. This means that the new method is applied to the remaining book value and useful life of the asset, without altering past financial statements. Therefore, no journal entry is required to record the change itself; future depreciation expense calculations will simply reflect the new method.

JFS Co Changed from Straight-Line to Double-Declining-Balance Depreciation