Doug Smith Industries Purchased Warehouses for $55 Million (No Residual

question 2

Multiple Choice

Doug Smith Industries purchased warehouses for $55 million (no residual value) at the beginning of 2015. The warehouses were being depreciated over a 10-year life using the sum-of-the-years'-digits method. At the beginning of 2018, management decided to change to straight-line.
-An accompanying disclosure note would include each of the following except:

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

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Definitions:

Disruptive

Refers to innovations or technologies that significantly alter the way businesses or entire industries operate, often displacing established entities.

Followership

The process of being guided and directed by a leader in the work environment.

Glass Cliff

A phenomenon where women or minority leaders are more likely to be placed in leadership roles during periods of crisis or decline, facing higher risks of failure.

Leadership Situations

Scenarios or conditions where the abilities and strategies of leaders are tested and applied based on the specific context or challenge.