For financial reporting, Clinton Poultry Farms has used the declining-balance method of depreciation for conveyor equipment acquired at the beginning of 2018 for $3,000,000. Its useful life was estimated to be five years, with a $215,000 residual value. At the beginning of 2021, Clinton decides to change to the straight-line method. The effect of this change on depreciation for each year is as follows:
($ in thousands)
Year Straight Line Declining Balance Difference
2018 $ 557 $ 1,200 $ 643 2019 557 720 163 2020 557 432 (125 ) $ 1,671 $ 2,352 $ 681 Required:
2. Prepare any 2021 journal entry related to the change. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.)
