On January 1, 2012, Rabbit Corp

question 64

Multiple Choice

On January 1, 2012, Rabbit Corp.acquired machinery which it depreciated using the straight-line method with an estimated useful life of fifteen years and no residual value.On January 1, 2017, Rabbit estimated that the remaining life of this machinery was six years with no residual value.This change should be accounted for

• A)as a prior period adjustment.
• B)as the cumulative effect of a change in accounting principle in 2017.
• C)by setting future annual depreciation equal to one-sixth of the book value on January 1, 2017.
• D)by continuing to depreciate the machinery over the original fifteen year life.

---

Definitions:

Reliable Transportation

Transportation means that consistently provides safe and timely conveyance from one place to another.

Approach-Avoidance Conflict

A psychological conflict that occurs when a single situation or goal has both attractive and unattractive aspects.

Fears

Emotional responses to perceived dangers or threats, causing anxiety or apprehension.

Overweight

Having more body fat than is optimally healthy, usually defined by a Body Mass Index (BMI) over 25.