A corporation has a machine that cost $100,000,with an estimated useful life of 5 years and a residual value of $25,000.Immediately after the end of the second year,the company decided to change from SYD to straight-line depreciation.The entry to record the change would include an effect on accumulated depreciation which would be a:

Question

Quizplus · Accepted Answer

The SYD depreciation for the first two years is $40,000. Under straight-line, it would be $30,000. The difference is $10,000, so accumulated depreciation is reduced by $15,000 (debit).

A Corporation Has a Machine That Cost $100,000,with an Estimated