Weaver Textiles Inc. has used the straight-line method to depreciate its equipment since it started business in 2014. At the beginning of 2018, the company decided to change to the double-declining-balance (DDB) method. Depreciation as reported and as it would have been reported if the company had always used DDB is listed below: Required:
What journal entry, if any, should Weaver make to record the effect of the accounting change (ignore income taxes)? Explain.

Question

Weaver Textiles Inc. has used the straight-line method to depreciate its equipment since it started business in 2014. At the beginning of 2018, the company decided to change to the double-declining-balance (DDB) method. Depreciation as reported and as it would have been reported if the company had always used DDB is listed below:  Required:
What journal entry, if any, should Weaver make to record the effect of the accounting change (ignore income taxes)? Explain.

Quizplus · Accepted Answer

The Answer of Weaver Textiles Inc. has used the straight-line method to depreciate its equipment since it started business in 2014. At the beginning of 2018, the company decided to change to the double-declining-balance (DDB) method. Depreciation as reported and as it would have been reported if the company had always used DDB is listed below:  Required:
What journal entry, if any, should Weaver make to record the effect of the accounting change (ignore income taxes)? Explain.