The Method of Depreciation Was Changed from the Double-Declining-Balance Method

question 104

Multiple Choice

The method of depreciation was changed from the double-declining-balance method to the straight-line method in fiscal 2019.A machine was purchased on January 1,2017,at a cost of $150,000.The machine has an estimated useful life of 10 years and a residual value of $9,000.What is the appropriate accounting?

• A)Retrospective adjustment for fiscal 2019.
• B)Retrospective adjustment for fiscal 2017 and 2018.
• C)Prospective adjustment from fiscal 2018 going forward.
• D)Error correction for fiscal 2019.

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Definitions:

Landscape Features

Natural and man-made formations or landmarks that characterize a specific area of land, including mountains, rivers, and forests.

Alluvial Fan

A low, gently sloping mass of sediment, shaped like an open fan or a segment of a cone; typically deposited by a stream where it exits a mountain range or joins a main stream.

Ice-Core Data

Data obtained from cylinders of ice drilled from glaciers or ice sheets, used to study past climates and atmospheric compositions.

Ice Cores

Cylinders of ice drilled from glaciers and ice caps, which are studied to understand past climate conditions through the analysis of trapped gas bubbles and particulate matter.