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Question - Albatross Company purchased a piece of machinery for $48,000 on January 1, 2019, and has been depreciating the machine using the double-declining-balance method based on a five-year estimated useful life and no salvage value. On January1, 2021, Albatross decided to switch to the straight-line method of depreciation. The salvage value is still zero and the estimated useful life did not change. Ignore income taxes.
Required -
1. Prepare the appropriate journal entry, if any, to record the accounting change under GAAP.
2. Prepare the journal entry to record depreciation for 2021.
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