Redeau Company Has Been Depreciating Certain Assets Using the Straight-Line

question 6

Multiple Choice

Redeau Company has been depreciating certain assets using the straight-line method.At the beginning of the current year, the company changed to the sum-of-the-years'-digits method to depreciate these assets.Which of the following statements regarding this change is true?

• A)The change should be accounted for prospectively.
• B)The change should be accounted for with an adjustment of the accumulated depreciation and the retained earnings balances.
• C)The change should be accounted for by including the cumulative effect of the change in the current year's income statement.
• D)The accounting impact of the change is limited to the difference in current-year depreciation on the affected assets.

---

Definitions:

High Levels

Refers to a significant amount or degree of a certain variable, often used in the context of measurements, quantities, or intensity.

Pollution

The introduction of harmful substances or products into the environment, causing negative effects on living beings and the ecosystem.

Environmental Problems

Issues relating to damage of the natural environment due to human activity, including pollution, climate change, and loss of biodiversity.

Technological Forces

External factors in the environment that relate to technological advancements and innovations, impacting businesses and society.