The Canliss Milling Company purchased machinery on January 2, 2022, for $920,000. A five-year life was estimated and no residual value was anticipated. Canliss decided to use the straight-line depreciation method and recorded $184,000 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Will Canliss apply the SYD method retrospectively or apply the method prospectively? Canliss will apply the SYD method

The Canliss Milling Company purchased machinery on January 2, 2022, for $920,000. A five-year life was estimated and no residual value was anticipated. Canliss decided to use the straight-line depreciation method and recorded $184,000 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Will Canliss apply the SYD method retrospectively or apply the method prospectively? Canliss will apply the SYD method

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Description: s The Canliss Milling Company purchased machinery on January 2, 2022, for $920,000. A five-year life was estimated and no residualvalue was anticipated. Canliss decided to use the straight-line depreciation method and recorded $184,000 in depreciatio

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 11E: On January 1, 2014, Klinefelter Company purchased a building for 520,000. The building had an...

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The Canliss Milling Company purchased machinery on January 2, 2022, for $930,000. A five-year life was estimated and no residual value was anticipated. Canliss decided to use the straight-line depreciation method and recorded $186,000 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: Will Canliss apply the SYD method retrospectively or apply the method prospectively? Prepare any 2024 journal entry related to the change.
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The Canliss Milling Company purchased machinery on January 2, 2016, for $800,000. A five-year life was estimated and no residual value was anticipated. Canliss decided to use the straight-line depreciation method andrecorded $160,000 in depreciation in 2016 and 2017. Early in 2018, the company changed its depreciation methodto the sum-of-the-years’-digits (SYD) method.Required:1. Briefly describe the way Canliss should report this accounting change in the 2017–2018 comparative financial statements.2. Prepare any 2018 journal entry related to the change