MMC Changed Depreciation Methods from Straight-Line to Sum-Of-The-Years'-Digits on Two

question 2

Multiple Choice

MMC changed depreciation methods from straight-line to sum-of-the-years'-digits on two of its machines.Data on the machines are as follows: If MMC makes the change at the beginning of Year 2 of the life on each machine, what is the total amount of the catch-up adjustment for this change?

• A)$56,000 debit to Accumulated depreciation
• B)The effects of this change are accounted for prospectively; therefore, a catch-up adjustment is not recorded.
• C)$34,400 debit to Accumulated depreciation
• D)$34,400 credit to Accumulated depreciation
• E)$34,400 credit to Retained earnings

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Definitions:

Socializing Agent

An individual, group, or institution that plays a role in integrating individuals into the norms, values, and cultures of their society.

Middle Childhood

Middle childhood is a stage of human development that typically ranges from ages 6 to 12 years, characterized by significant growth in cognitive, social, and emotional domains.

Adolescence

is the transitional stage of physical and psychological development that generally occurs during the period from puberty to legal adulthood.

Gender Socialization

The process by which individuals learn the cultural norms and expectations associated with their gender through social institutions like family, education, and media.