Green Co Constructed a Machine at a Total Cost of $70

question 78

Essay

Green Co. constructed a machine at a total cost of $70 million. Construction was completed at the end of 2014 and the machine was placed in service at the beginning of 2015. The machine was being depreciated over a 10-year life using the sum-of-the-years'-digits method. The residual value is expected to be $4 million. At the beginning of 2018, Green decided to change to the straight-line method.
Required:
1. Ignoring income taxes, what journal entry(s) should Green record relating to the machine for 2018?
2. Suppose Green has been using the straight-line method and switches to the sum-of-the-years'-digits method. Ignoring income taxes, what journal entry(s) should Green record relating to the machine for 2018?

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Definitions:

Auscultating

The act of listening to the internal sounds of the body, typically with a stethoscope, as part of a medical examination.

Deep, Rapid Breaths

A pattern of breathing that is both deeper and faster than normal, often a sign of distress, excitement, or physical exertion.

Tactile Fremitus

A vibration felt on the chest wall during speech, which can indicate abnormalities in or around the lungs.

Adventitious Sounds

Unusual or abnormal sounds heard during a respiratory examination, indicating potential lung issues.