Question - Gonzaga Company used the double declining balance method for depreciation since it started business in 2012. At the beginning of 2016, the company decided to change to the straight line method. Depreciation as reported and what it would have been reported if the company had always used the straight line is listed below.
|
year
|
straight line
|
ddb
|
|
2012
|
32000
|
64000
|
|
2013
|
35000
|
50000
|
|
2014
|
39000
|
58000
|
|
2015
|
39000
|
48000
|
What journal entry, if any, should Gonzaga make to record the effect of the accounting change (ignore income taxes)? Explain.