On January 7, 2013, Yoder Corporation Acquired Machinery at a Cost

question 87

Multiple Choice

On January 7, 2013, Yoder Corporation acquired machinery at a cost of $2,100,000. Yoder adopted the sum-of-the-years'-digits method of depreciation for this machine and had been recording depreciation over an estimated life of five years, with no residual value. At the beginning of 2015, a decision was made to change to the straight-line method of depreciation for this machine. Assuming a 30% tax rate, the cumulative effect of this accounting change, net of tax, is

• A) $0
• B) $280,000
• C) $294,000
• D) $420,000

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Definitions:

Three Skill Model

A leadership model suggesting that effective leaders require a combination of technical, human, and conceptual skills.

Leadership

The act of guiding or managing a group of people or an organization.

Katz

Refers to a model developed by Robert Katz that identifies three essential managerial skills: technical, human, and conceptual.

Stogdill

Refers to Ralph M. Stogdill, a researcher whose work significantly contributed to the fields of leadership and organizational behavior.