In 2012, Management of Simolin Company Changed from Straight-Line to Double-Declining

question 63

Essay

In 2012, management of Simolin Company changed from straight-line to double-declining balance depreciation. The total difference in depreciation for all years through 2012 was $54,000 and for 2013 the difference was $6,200. The tax rate is 30%. Calculate the amount by which retained earnings at the start of 2013 should be adjusted.

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Definitions:

Short Periods

Brief intervals of time, which can refer to various contexts, including menstrual cycles or time frames for tasks.

Intestinal Failure

A condition in which the intestines cannot digest food or absorb the necessary nutrients and fluids.

Enteral Nutrition

A method of providing food through a tube placed in the nose, the stomach, or the small intestine when a person cannot consume food by mouth.

Parenteral Nutrition

Nutritional support given intravenously, bypassing the digestive tract, used for patients who cannot or should not get their nutrition orally.