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.

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