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The Collins Corporation purchased office equipment at the beginning of 2014 and capitalized a cost of $2,270,000. This cost included the following expenditures:

Purchase price	$	2,030,000
Freight charges		48,000
Installation charges		38,000
Annual maintenance charge		154,000
Total	$	2,270,000

The company estimated an eight-year useful life for the equipment. No residual value is anticipated. The double-declining-balance method was used to determine depreciation expense for 2014 and 2015.

In 2016, after the 2015 financial statements were issued, the company decided to switch to the straight-line depreciation method for this equipment. At that time, the companys controller discovered that the original cost of the equipment incorrectly included one year of annual maintenance charges for the equipment.

Required:

1 & 2.

Ignoring income taxes, prepare the appropriate correcting entry for the equipment capitalization error discovered in 2016 and any 2016 journal entry(s) related to the change in depreciation methods. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) 1. Record the entry to correct incorrect accounts. 2. Record entry in 2016 due to the change in depreciation methods. 3. Record the 2016 adjusting entry for depreciation.

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