Holt Developments Ltd. put an asset in service on January 1, 2018. Its cost was...
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Accounting
Holt Developments Ltd. put an asset in service on January 1, 2018. Its cost was $324,000, its predicted service life was six years, and its expected residual value was $32,400. The company decided to use double-declining-balance depreciation. After consulting with the companys auditors, management decided to change to straight-line depreciation in 2020, without changing either the original service life or residual value.
required:
A. What is depreciation expense for 2020?
Depreciation expense ___________
B. Calculate the effect of this change on retained earnings.
Retained earnings will (increase/decrease) by ____________
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