Brief Exercise 21-9 Your answer is partially correct. Try again. Noland Corporat

Question

Brief Exercise 21-9 Your answer is partially correct. Try again. Noland Corporation decided at the beginning of 2017 to change from the declining-balance method of depreciating its capital assets to the straight-line method because the straight-line method better represents the pattern of benefits provided by the capital assets. For years prior to 2017, total depreciation expense under the two methods was as follows: declining balance, $225,000; and straight-line, $105,000. The tax rate is 30%. Noland follows ASPE, and the taxes payable method of accounting for income taxes. Prepare Noland's 2017 journal entry, if any, to record the change in estimate. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select No Entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit

Explanation / Answer

Change in accounting estimates (e.g., depreciation rate, useful life, salvage value) accounted for prospectively (current and future periods).

Change in depreciation method is a change in accounting principle inseperable from a change in accounting estimate and, thus, also treated propspectively.

No journal entry will be recorded for the change in estimate.

No Journal entry.

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