Gonzaga Company has used the double-declining-balance method for depreciation since it started business in 2012.At the beginning of 2016,the company decided to change to the straight-line method.Depreciation as reported and what it would have been reported if the company had always used straight-line is listed below:

Required:
What journal entry,if any,should Gonzaga make to record the effect of the accounting change (ignore income taxes)? Explain.

Question

Gonzaga Company has used the double-declining-balance method for depreciation since it started business in 2012.At the beginning of 2016,the company decided to change to the straight-line method.Depreciation as reported and what it would have been reported if the company had always used straight-line is listed below:
  
Required:
What journal entry,if any,should Gonzaga make to record the effect of the accounting change (ignore income taxes)? Explain.

Quizplus · Accepted Answer

The Answer of Gonzaga Company has used the double-declining-balance method for depreciation since it started business in 2012.At the beginning of 2016,the company decided to change to the straight-line method.Depreciation as reported and what it would have been reported if the company had always used straight-line is listed below:
  
Required:
What journal entry,if any,should Gonzaga make to record the effect of the accounting change (ignore income taxes)? Explain.

Gonzaga Company Has Used the Double-Declining-Balance Method for Depreciation Since