Lockenberg Company Changed the Amortization Method (A Change in Accounting

question 19

Multiple Choice

Lockenberg Company changed the amortization method (a change in accounting principle) for its fleet of delivery trucks.The accumulated net after-tax effect was an increase of prior period's net income by $84,300.This adjustment will have the following effect on Lockenberg's current year net income:

• A)Current year's net income will be unaffected
• B)Current year's net income will increase by $84,300
• C)Current year's net income will increase by $84,300 minus the income tax effect
• D)Current year's net income will decrease by $84,300

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Definitions:

Seed Coat

The outer protective covering of a seed.

Megaspore

A type of spore in plants that develops into a female gametophyte, involved in the reproductive process.

Sporophyte Generation

The stage in the life cycle of plants and algae where the organism is diploid and generates spores.

Gametophyte

The haploid stage in the life cycle of plants and algae that produces gametes through mitosis for sexual reproduction.