For financial reporting, Clinton Poultry Farms has used the declining-balance method of depreciation for conveyor equipment...

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For financial reporting, Clinton Poultry Farms has used the declining-balance method of depreciation for conveyor equipment a

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Answer 1

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journal entry:

Account title		Debit	Credit
Depreciation expense(notes)		$ 200,000
To Accumulated depreciation	$200,000


Notes:
Computation of new depreciation related to the change.

Details		Amount
Asset’s cost at the beginning (given)		2576000
Accumulated depreciation to date		-$ 1812,000
Undepreciated cost		$ 764,000
Estimated residual value		-$ 164,000
To be depreciated over remaining 3 years		$ 600,000
Annual straight-line depreciation for remaining 3 years =600,000/ 3 years		$200,000

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Answer 2

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