For financial reporting, Clinton Poultry Farms has used the declining-balance method of depreciation for conveyor equipment acquired at the beginning of 2018 for $2,688,000. Its useful life was estimated to be six years with a $192,000 residual value. At the beginning of 2021, Clinton decides to change to the straight-line method. The effect of this change on depreciation for each year is as follows:
($ in thousands)
Year Straight-Line Declining Balance Difference
2018 $ 416 $ 896 $ 480 2019 416 597 181 2020 416 398 (18 ) $ 1,248 $ 1,891 $ 643
