Pinnacle Corporation Has Been Using the Straight-Line Depreciation Method to Depreciate

question 67

Essay

Pinnacle Corporation has been using the straight-line depreciation method to depreciate some office equipment that was acquired at the beginning of 2010. At the beginning of 2013, Pinnacle decided to change to the sum-of-the-years'-digits method. The equipment cost $120,000 and is expected to have no salvage value. The estimated useful life of the equipment is five years. The tax rate is 30%.
Required:
Prepare the journal entry, if any, to record the accounting change at the beginning of 2013.

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Definitions:

Metabolic Syndrome

A cluster of conditions—increased blood pressure, high blood sugar, excess body fat around the waist, and abnormal cholesterol levels—that occur together, increasing the risk of heart disease, stroke, and diabetes.

Occupational Burnout

A state of physical, emotional, and mental exhaustion caused by prolonged stress and frustration at work, leading to reduced productivity and a sense of disillusionment.

Workplace Stress

The physical and emotional strain resulting from job-related pressures and challenges.

Depression

A common mental health disorder characterized by persistent sadness, lack of interest or pleasure, and can severely affect daily functioning.