Gerald Englehart Industries Changed From The Doubledeclining Balance To The

Gerald Englehart Industries changed from the double-declining balance to the straight-line method in 2008 on all its plant assets. There was no change in the assets’ salvage values or useful lives. Plant assets, acquired on January 2, 2005, had an original cost of $1,600,000, with a $100,000 salvage value and an 8-year estimated useful life. Income before depreciation expense was $270,000 in 2007 and $300,000 in 2008.
Instructions
(a) Prepare the journal entry (ies) to record the change in depreciation method in 2008.
(b) Starting with income before depreciation expense, prepare the remaining portion of the income statement for 2007 and 2008.

Posted in Uncategorized