Information for a Firm Making an Accounting Change Follows

question 2

Essay

Information for a firm making an accounting change follows: Tax rate: 30%
Common shares outstanding entire year for both years: 100;
Retained earnings,1/1/x0: $6,000
The firm changes from SYD to SL depreciation in 20x1 for financial
reporting purposes only. Required:
(a)The 20x1 entries to record the accounting change and depreciation expense for 20x1.
(b)The comparative 20x0 and 20x1 income statements including pro forma disclosures if needed,EPS,and any disclosure footnote required.

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Definitions:

Exploring

The act of investigating or examining something thoroughly in order to gain new knowledge or insights.

Culture Shock

Feelings of nervousness, doubt, and confusion arising from being in a foreign environment.

Nervousness

A feeling of anxiety, apprehension, or unease, often experienced before an event requiring performance or in unfamiliar situations.

Unfamiliar Environment

A situation or setting that is not known or experienced before, potentially leading to uncertainty or discomfort.