Change in estimate-depreciation

Reference no: EM13761157

(Change in Estimate-Depreciation) Zebra Corp. changed from the straight-line method to the double-declining-balance method in 2015 on all its equipment. There was no change in the salvage values or useful lives. The equipment was purchased in 2014, and the original cost was $600,000 with no salvage value and a 6-year estimated useful life. Income before depreciation expense was $560,000 in 2014 and $760,000 in 2015. Zebra's tax rate is 40%.

Instructions

(a) Prepare the journal entry(ies) to record the change in depreciation method in 2015.

(b) Starting with income before depreciation expense, prepare the remaining portion of the income statement for 2014 and 2015.

Reference no: EM13761157

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