Answer:
Dr Depreciation expense(notes) $81,000
Cr To Accumulated depreciation $81,000
Explanation:
Preparation of any 2021 journal entry related to the change.
First step is to Compute the new depreciation related to the change.
Details Amount
Asset’s cost at the beginning $2,750,000
Accumulated depreciation to date ($ 2,352,000)
Less Undepreciated cost $ 398,000
($2,750,000- $2,352,000)
Less Estimated residual value ($155,000)
To be depreciated over remaining 3 years $ 243,000
($398,000-$155,000)
Annual straight-line depreciation for remaining 3 years =$ 243,000/ 3 years $81,000
Now let prepare the Journal entry
Dr Depreciation expense(notes) $81,000
Cr To Accumulated depreciation $81,000
