The method of depreciation was changed from the double-declining-balance method to the straight-line method in fiscal 2019.A machine was purchased on January 1,2017,at a cost of $150,000.The machine has an estimated useful life of 10 years and a residual value of $9,000.What adjustment is needed for fiscal 2018?

Question

Quizplus · Accepted Answer

A)Depreciation required under straight line: (150,000 - 9,000)/ 10 = 14,100
2018 depreciation booked: (150,000 - 30,000)× 2/10 = 24,000
Adjustment = 9,900

The Method of Depreciation Was Changed from the Double-Declining-Balance Method