Use the Following Information for Questions

question 23

Multiple Choice

Use the following information for questions.
Ventura Corporation purchased machinery on January 1, 2009 for $630,000.The company used the sum-of-the-years'-digits method and no salvage value to depreciate the asset for the first two years of its estimated six-year life.In 2010, Ventura changed to the straight-line depreciation method for this asset.The following facts pertain:

-Ventura is subject to a 40% tax rate.The cumulative effect of this accounting change on beginning retained earnings is

• A)$135,000.
• B)$120,000.
• C)$72,000.
• D)$0.

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Definitions:

Behavioral Stability

Consistency in patterns of action or behavior over time, reflecting a person's or group's predictability and reliability.

R&D Organization

An organization primarily focused on research and development activities aimed at the creation of new products, services, or processes.

Performance Declined

A situation where the level of effectiveness, productivity, or efficiency of an individual or group decreases compared to a previous period.

Working Together

refers to the collaborative effort of two or more individuals aiming to achieve a common goal by pooling their skills and resources.