When a Firm Decided to Change Its Method of Depreciation

question 39

Multiple Choice

When a firm decided to change its method of depreciation from the straight-line method to an accelerated method,in Year 8,it discovered that the effect of the change on total depreciation expense for all years affected was as follows.For all years prior to year 8,the depreciation was $50,000 in total.For year 8 only,the depreciation increased by $11,000. Ignoring taxes,Year 8 income is decreased by what amount,and in what classification,as a result of the accounting change? $$\begin{array} { | r | r | r | } \hline & \begin{array} { c } \text { Income from } \\\text { continuing operations }\end{array} & \text { Net income } \\\hline 1 & \$ 11,000 & \$ 0 \\\hline 2 & \$ 11,000 & \$ 11,000 \\\hline 3 & \$ 61,000 & \$ 0 \\\hline 4 & \$ 0 & \$ 51,000 \\\hline\end{array}$$

• A)Choice 1
• B)Choice 2
• C)Choice 3
• D)Choice 4

Explore the evolutionary perspectives on bias and its impact on person perception.

Understand the dynamics of group behavior and the bystander effect.

Recognize the importance of group cohesiveness and its contribution to phenomenon like groupthink.

Analyze the role of attractiveness in social relationship initiation and progression.

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Definitions:

Reflective Judgment

The process of critically evaluating evidence and arguments to make a reasoned judgment that is well-supported and accounts for uncertainty.

Social Interaction

The process by which people act and react in relation to others, influencing each other's behaviors and thoughts.

Universal

Affecting or applicable to all people or things in the world or in a particular group.

Reflective Judgment

The cognitive process of critically evaluating the validity of various opinions in the face of uncertainty, leading to well-reasoned conclusions.