Colorado Consulting Company Has Been Using the Sum-Of-The-Years'-Digits Depreciation Method

question 87

Essay

Colorado Consulting Company has been using the sum-of-the-years'-digits depreciation method to depreciate some office equipment that was acquired at the beginning of 2016. At the beginning of 2018, Colorado Consulting decided to change to the straight-line method. The equipment cost $120,000 and is expected to have no salvage value. The estimated useful life of the equipment is five years. Ignore income taxes.
Required:
1. Prepare the appropriate journal entry, if any, to record the accounting change.
2. Prepare the journal entry to record depreciation for 2018.

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Definitions:

Segregated Units

Military or organizational units that were divided based on race, ethnicity, or other criteria, historically common in the U.S. military and other institutions.

General Pershing

John J. Pershing, a senior United States Army officer who commanded the American Expeditionary Force in Europe during World War I.

Treaty Of Brest-Litovsk

A peace treaty signed on March 3, 1918, between the new Bolshevik government of Russia and the Central Powers (Germany, Austria-Hungary, Bulgaria, and Ottoman Empire), ending Russia's participation in World War I and resulting in significant territorial losses for Russia.

Russian Civil War

A multi-party war in the former Russian Empire after the Bolshevik Revolution, occurring between 1917 and 1922, leading to the establishment of the Soviet Union.