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Question - 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
379
(21)
$1,200
$1,801
$601
Required: Prepare any 2011 journal entry related to the change.
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