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For financial reporting, Clinton Poultry Farms has used the declining-balance method of depreciation for conveyor...

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Accounting

For financial reporting, Clinton Poultry Farms has used the declining-balance method of depreciation for conveyor equipment acquired at the beginning of 2021 for $2,750,000. Its useful life was estimated to be five years, with a $165,000 residual value. At the beginning of 2024, Clinton decides to change to the straight-line method. The effect of this change on depreciation for each year is as follows:
($ in thousands)
Year Straight Line Declining Balance Difference
2021 $ 517 $ 1,100 $ 583
2022517660143
2023517396(121)
$ 1,551 $ 2,156 $ 605
Required:
2. Prepare any 2024 journal entry related to the change. Record depreciation expense for 2024.
Note: Enter debits before credits.
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