The Canliss Milling Company purchased machinery on January 2, 2022, for $940,000. A five-year life was estimated and no residual value was anticipated. Canliss decided to use the straight-line depreciation method and recorded $188,000 in depreciation in 2022 and 2023. Early in 2024, the company changed its depreciation method to the sum-of-the-years'-digits (SYD) method. Required: 1. Will Canliss apply the SYD method retrospectively or apply the method prospectively? 2. Prepare any 2024 journal entry related to the change.

The Canliss Milling Company purchased machinery on January 2, 2022, for $940,000. A five-year life was estimated and no residual value was anticipated. Canliss decided to use the straight-line depreciation method and recorded $188,000 in depreciation in 2022 and 2023. Early in 2024, the company changed its depreciation method to the sum-of-the-years'-digits (SYD) method. Required: 1. Will Canliss apply the SYD method retrospectively or apply the method prospectively? 2. Prepare any 2024 journal entry related to the change.

Name: Ind 2The Canliss Milling Company purchased machinery on January 2, 202
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Description: Ind 2The Canliss Milling Company purchased machinery on January 2, 2022, for $940,000. A five-year life was estimated and no residualvalue was anticipated. Canliss decided to use the straight-line depreciation method and recorded $188,000 in deprecia

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 7RE: Bliss Company owns an asset with an estimated life of 15 years and an estimated residual value of...

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