Use the Following Information for Questions 53 and 54

question 102

Multiple Choice

Use the following information for questions 53 and 54.
Swift Company purchased a machine on January 1, 2012, for $600,000. At the date of acquisition, the machine had an estimated useful life of six years with no salvage. The machine is being depreciated on a straight-line basis. On January 1, 2015, Swift determined, as a result of additional information, that the machine had an estimated useful life of eight years from the date of acquisition with no salvage. An accounting change was made in 2015 to reflect this additional information.
-Assume that the direct effects of this change are limited to the effect on depreciation and the related tax provision, and that the income tax rate was 30% in 2012, 2013, 2014, and 2015. What should be reported in Swift's income statement for the year ended December 31, 2015, as the cumulative effect on prior years of changing the estimated useful life of the machine?

• A) $0
• B) $40,000
• C) $60,000
• D) $210,000

---

Definitions:

Passive

Lacking in active response or involvement; allowing or subject to action without opposition or resistance.

Environmental Circumstances

The context or conditions in one's surroundings, including social, cultural, and physical environments, that influence outcomes and opportunities.

Human Behaviour

The range of actions and mannerisms exhibited by humans in conjunction with their environment, social structures, and culture.

Humanist

An individual who adopts a philosophical stance emphasizing the value and agency of human beings, individually and collectively.