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

question 85

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 adjustment is needed for fiscal 2018?

• A)$9,900
• B)$10,000
• C)$20,000
• D)$30,000

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Definitions:

Equivalent Units

A concept used in process costing that converts partially completed goods into a number of completed units, facilitating the calculation of unit costs.

Direct Labor

The labor costs directly associated with the production of goods or provision of services in a company.