SkiPark Company Purchased a Gondola for $440,000 (No Residual Value)

question 3

Multiple Choice

SkiPark Company purchased a gondola for $440,000 (no residual value) at the beginning of 2015. The gondola was being depreciated over a 10-year life using the double-declining method. At the beginning of 2018, it was decided to change to straight-line. An accompanying disclosure note would include each of the following except:

• A) The effect of a change on any financial statement line items affected for all periods reported.
• B) Justification that the change is preferable.
• C) The cumulative effect of the change.
• D) The effect of a change on per share amounts affected for all periods reported.

---

Definitions:

Strongly Disagree

A response option in surveys and questionnaires indicating a respondent's firm opposition to a statement or viewpoint.

Opposite Meanings

Terms or words that have completely different or contrary meanings to each other.

Reification

Turning an abstract into a concrete thing—for example, assuming that because there are measures of intelligence, there is a unitary, tangible entity called intelligence.

Abstraction

The process of removing physical, specific details to focus on ideas or concepts at a more general, simplified level.