Maxim,IncChanged Its Depreciation Method from Units-Of-Production to Straight-Line

question 253

Multiple Choice

Maxim,Inc.changed its depreciation method from units-of-production to straight-line.Maxim is:

• A) only allowed to make this change if it gets permission from the IRS.
• B) only allowed to make this change if it can show the change results in a lower net income.
• C) not allowed to change depreciation methods.
• D) only allowed to make this change if it can show the change results in a better measure.

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Definitions:

Net Exports

The value of a country's total exports minus the value of its total imports.

Trade Surplus

The amount by which the value of a country's exports exceeds the cost of its imports.

Exports

Goods or services sold by one country to another, contributing to the selling country's gross domestic product.

Imports

Products or services imported into a country from abroad for the purpose of selling.