JFS Co. changed from straight-line to DDB 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

A change in depreciation method is considered a change in accounting estimate, which is applied prospectively. It does not require a journal entry to adjust past depreciation. Instead, the new method is applied to the asset's remaining book value over its remaining useful life.

JFS Co Changed from Straight-Line to DDB Depreciation