Change in principle; change in depreciation methods
Response to the following problem:
Alteran Corporation purchased office equipment for $1.5 million in 2013. The equipment is being depreciated over a 10-year life using the sum-of-the-years'-digits method. The residual value is expected to be $300,000. At the beginning of 2016, Alteran decided to change to the straight-line depreciation method for this equipment.
Required:
Prepare the 2016 depreciation adjusting entry.