Essay
Gonzaga Company has used the double-declining-balance method for depreciation since it started business in 2005. At the beginning of 2009, the company decided to change to the straight-line method. Depreciation as reported and what it would have been reported if the company had always used straight-line is listed below:
Required:
What journal entry, if any, should Gonzaga make to record the effect of the accounting change (ignore income taxes)? Explain.
Correct Answer:
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