The Canliss Milling Company purchased machinery on January 2, 2022, for$930,000. A five-year life was estimated and no residual value was anticipated.Canliss decided to use the straight-line depreciation method and recorded$186,000 in depreciation in 2022 and 2023. Early in 2024, the companychanged its depreciation method to the sum-of-the-years'-digits (SYD) method.Required: Will Canliss apply the SYD method retrospectively or apply themethod prospectively? Prepare any 2024 journal entry related to the change.

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Description: The Canliss Milling Company purchased machinery on January 2, 2022, for$930,000. A five-year life was estimated and no residual value was anticipated.Canliss decided to use the straight-line depreciation method and recorded$186,000 in depreciation i

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The Canliss Milling Company purchased machinery on January 2, $930,000. A five-year life was estimated and no residual value wa Canliss decided to use the straight-line depreciation method and

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter22: Accounting For Changes And Errors.

Section: Chapter Questions

Problem 11E: On January 1, 2014, Klinefelter Company purchased a building for 520,000. The building had an...

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The Canliss Milling Company purchased machinery on January 2, 2019, for $800,000. A five-year life was estimated and no residual value was anticipated. Canliss decided to use the straight-line depreciation method and recorded $160,000 in depreciation in 2019 and 2020. Early in 2021, the company changed its depreciation method to the sum-of-the-years’-digits (SYD) method.Required:1. Will Canliss apply the straight-line method retrospectively or apply the method prospectively?2. Prepare any 2021 journal entry related to the change.
The Canliss Milling Company purchased machinery on January 2, 2019, for $800,000. A five-year life was estimated and no residual value was anticipated. Canliss decided to use the straight-line depreciation method and recorded $160,000 in depreciation in 2019 and 2020. Early in 2021, the company changed its depreciation method to the sum-of-the-years’-digits (SYD) method. Required:2. Prepare any 2021 journal entry related to the change. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Record the adjusting entry for depreciation in 2021.
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