2. Prepare the entry, to appropriately reflect the 205 depreciation in the accounts for 205, the year of the change. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 1 Record the depreciation at year-end, 205. Credit Note : O= journal entry has been entered Stacey Corp. has been depreciating equipment over a 10 -year life on a straight-line basis. The equipment, which cost $27,700, was purchased on 1 January 20X1. It has an estimated residual value of $7,200. On the basis of experience since acquisition, management has decided in 205 to depreciate it over a total life of 14 years instead of 10 years, with no change in the estimated residual value. The change is to be effective on 1 January 205. The 205 financial statements are prepared on a comparative basis; 204 and 205 incomes before depreciation were $53,100 and $55,400, respectively. Disregard income tax considerations. Required: 1-a. Analyze the effects of the change. (Amounts to be deducted should be indicated by a minus sign.) 1-b. Which approach should be used-prospective without restatement, retrospective with partial restatement, or retrospective with full restatement
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