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

question 52

Multiple Choice

The method of depreciation was changed from the double-declining-balance method to the straight-line method in fiscal 2022. A machine was purchased on January 1, 2020, at a cost of $150,000. The machine has an estimated useful life of 10 years and a residual value of $9,000. Assume that net income before tax NIBT) was $102,000 for fiscal 2021. What is the appropriate accounting for fiscal 2021?

• A)Retrospective adjustment and revised NIBT of $87,900.
• B)Retrospective adjustment and revised NIBT of $126,000.
• C)Retrospective adjustment and revised NIBT of $111,900.
• D)No accounting is necessary in fiscal 2021.

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Dyspnea

A term for difficulties in breathing, often described as shortness of breath or breathlessness.

Heart Palpitations

The sensation that the heart is racing, pounding, fluttering, or beating irregularly, often linked to anxiety, stress, or underlying health conditions.

Dizziness

A sensation of unsteadiness or a feeling of movement within the head that can lead to balance issues.

Specific Phobia

An intense, irrational fear of a specific object, situation, or activity that leads to avoidance behavior.