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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 2018 for $2,688,000. Its useful life was estimated to be six years with a $192,000 residual value. At the beginning of 2021, 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
2018 $ 416 $ 896 $ 480
2019 416 597 181
2020 416 398 (18 )
$ 1,248 $ 1,891 $ 643

Required: 2. Prepare any 2021 journal entry related to the change. (Enter your answers in dollars. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

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