If a change is made from straight-line to units-of-production depreciation, one should record the effects by a journal entry including:
A) A credit to deferred tax liability.
B) A credit to accumulated depreciation.
C) A debit to depreciation expense.
D) No journal entry is required.

Question

Quizplus · Accepted Answer

When changing depreciation methods, the change is accounted for prospectively. This means that no journal entry is required to record the change itself; instead, the new method is simply applied to future depreciation calculations.

If a Change Is Made from Straight-Line to Units-Of-Production Depreciation