Saluki, Inc. constructed a machine. Depreciation was computed using the sum-of-the-years'-digits method. At the beginning of 2014, Saluki decided to change to the straight-line method.Cost of machine320,000$ Placed in service on1/1/2012Useful life10 Estimated residual value40,000$ Instructions:
1. Ignoring income taxes, record the journal entry(s) Saluki should record relating to the machine for 2014.
2. Suppose Saluki has been using the straight-line method and switches to the sum-of-the-years'-digits method. Ignoring income taxes, record the journal entry(s) Saluki should record relating to the machine for 2014.