Upton makes up its financial statements to 31 December each year. On 1 January 20X0 it bought a machine with a useful life of 10 years for USD 200,000 and started to depreciate it at 15% per annum on the reducing balance basis. On 31 December 20X3 the accumulated depreciation was USD 95,600 and the carrying amount USD 104,400. During 20X4 the company changed the basis of depreciation to straight line.What is the correct accounting treatment to be adopted in the financial statements of Upton for the year ended 31 December 20X4?
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