Irwin, Inc., constructed a machine at a total cost of $23 million. Construction was completed at...

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Accounting

Irwin, Inc., constructed a machine at a total cost of $23million. Construction was completed at the end of 2012 and themachine was placed in service at the beginning of 2013. The machinewas being depreciated over a 10-year life using the straight-linemethod. The residual value is expected to be $3 million. At thebeginning of 2016, Irwin decided to change to thesum-of-the-years’-digits method. Ignoring income taxes, prepare thejournal entry relating to the machine for 2016.

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Please note that all amount expressed in millions dollars Cost of Assets 2300 Less Estimated residual value 300 Depreciable cost 2000 Divided by useful life 1000 Depreciating Expense 200 Depreciating Expense for See Answer

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