The Canliss Milling Company purchased machinery on January 2, 2014, for $800,000. A five-year life was estimated and no residual value was anticipated. Canliss decided to use the straight-line depreciation method and recorded $160,000 in depreciation in 2014 and 2015. Early in 2016, the company changed its depreciation method to the sum-of-the-years’-digits (SYD) method. Required: 1. Briefly describe the way Canliss should report this accounting change in the 2015–2016 comparative financial statements. 2. Prepare any 2016 journal entry related to the change.
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