Use the Following Information for Questions

question 30

Multiple Choice

Use the following information for questions.
On January 1, 2009, Nobel Corporation acquired machinery at a cost of $600,000.Nobel adopted the straight-line method of depreciation for this machine and had been recording depreciation over an estimated life of ten years, with no residual value.At the beginning of 2012, a decision was made to change to the double-declining balance method of depreciation for this machine.
-Assuming a 30% tax rate, the cumulative effect of this accounting change on beginning retained earnings, is

• A)$67,200.
• B)$0.
• C)$78,960.
• D)$112,800.

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Definitions:

Contract

A legally-binding agreement between two or more parties that outlines obligations and privileges.

Organizational Behavior

The study of how people interact within groups, particularly in a work context, including patterns of behavior and underlying psychological mechanisms.

Marketing Promotions

Activities and strategies used to increase awareness, interest, and sales of products or services, including advertising, sales, and public relations efforts.

Job Satisfaction

Job satisfaction is the level of contentment employees feel about their work, which can impact their performance and organizational commitment.