On January 1, Year 1, the Dole Company purchased an asset that cost $154,000. The asset had an expected useful life of seven years and no estimated residual value. The company initially decided to use sum-of-the-years'-digits SYD) depreciation for both financial accounting and income tax purposes. Depreciation expense for the straight-line
method and the sum-of-the-years'-digits method is as follows:

\begin{array} { c c c r } \text { Year } & \begin{array} { c } \text { Straight-line } \\\text { over7Years }\end{array} & \begin{array} { r } \text { SYD over } \\\text { oYears }\end{array} & { \text { Difference } } \\\hline1 & \$ 22,000 & \$ 38,500 & \$ 16,500 \\2 & 22,000 & 33,000 & 11,000 \\3 & 22,000 & 27,500 & 5,500 \\4 & 22,000 & 22,000 & 0 \\5 & 22,000 & 16,500 & ( 5,500 ) \\6 & 22,000 & 11,000 & ( 11,000 ) \\7 & \underline { 22,000 } & \underline { 5,500 } & \underline { ( 16,500 } ) \\& \underline { \$ 154,000 } & \underline { \$ 154,000 } & \underline { \$ \quad 0 }\end{array}

At the beginning of Year 4, Dole changed from the sum-of-the-years'-digits method to the straight-line method of depreciation for financial reporting purposes. The company's income tax rate is 30%. In Year 3 and Year 4, Dole had
$90,000 pretax income before depreciation and income taxes.
Required:
a. Complete the following section of the income statement:
$On January 1, Year 1, the Dole Company purchased an asset that cost $154,000. The asset had an expected useful life of seven years and no estimated residual value. The company initially decided to use sum-of-the-years'-digits SYD) depreciation for both financial accounting and income tax purposes. Depreciation expense for the straight-line method and the sum-of-the-years'-digits method is as follows: \begin{array} { c c c r } \text { Year } & \begin{array} { c } \text { Straight-line } \\ \text { over7Years } \end{array} & \begin{array} { r } \text { SYD over } \\ \text { oYears } \end{array} & { \text { Difference } } \\\hline 1 & \$ 22,000 & \$ 38,500 & \$ 16,500 \\ 2 & 22,000 & 33,000 & 11,000 \\ 3 & 22,000 & 27,500 & 5,500 \\ 4 & 22,000 & 22,000 & 0 \\ 5 & 22,000 & 16,500 & ( 5,500 ) \\ 6 & 22,000 & 11,000 & ( 11,000 ) \\ 7 & \underline { 22,000 } & \underline { 5,500 } & \underline { ( 16,500 } ) \\ & \underline { \$ 154,000 } & \underline { \$ 154,000 } & \underline { \$ \quad 0 } \end{array} At the beginning of Year 4, Dole changed from the sum-of-the-years'-digits method to the straight-line method of depreciation for financial reporting purposes. The company's income tax rate is 30%. In Year 3 and Year 4, Dole had $90,000 pretax income before depreciation and income taxes. Required: a. Complete the following section of the income statement: b. Prepare the journal entries to record the depreciation expense, tax expense, and the effect of the accounting change if any) in Year 4.$
b. Prepare the journal entries to record the depreciation expense, tax expense, and the effect of the accounting change if any) in Year 4.

All of the Following Would Be Reported Retrospectively by Restating

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