change in principle change in depreciation methods 460990

For financial reporting, Clinton Poultry Farms has used the declining-balance method of depreciation for conveyor equipment acquired at the beginning of 2008 for $2,560,000. Its useful life was estimated to be six years, with a $160,000 residual value. At the beginning of 2011, Clinton decides to change to the straight-line method. The effect of this change on depreciation for each year is as follows:

($ in 000s)

Year Straight Line Declining Balance Difference

2008 $ 400 $ 853 $ 453

2009 400 569 169

2010 400 379 (21 )

$ 1,200 $ 1,801 $ 601

Required:

(2)

Prepare any 2011 journal entry related to the change. (Enter your answers in dollars not in thousands. Use the declining balance provided in the question. Round your answers to the nearest dollar amount. Omit the “$” sign in your response.)

General Journal Debit Credit