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:

Domain

In biology, it refers to the highest taxonomic rank in the classification of organisms, above kingdom; in other contexts, it can denote a realm of expertise, activity, or knowledge.

Kingdom

A large taxonomic category that classifies life forms, ranking above a phylum and below a domain.

Nuclei

Plural form of nucleus, referring to the membrane-bound organelles found in eukaryotic cells that contain the genetic material.

Archaea

A domain of single-celled microorganisms that are genetically distinct from bacteria and eukaryotes, often inhabiting extreme environments.