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

question 95

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 $80,000 for fiscal 2020. What is the appropriate accounting for fiscal 2020?

• A)Retrospective adjustment and revised NIBT of $110,000.
• B)Retrospective adjustment and revised NIBT of $95,900.
• C)Retrospective adjustment and revised NIBT of $65,900.
• D)No accounting is necessary in fiscal 2020.

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Definitions:

Cis-Regulatory Elements

DNA sequences in the genome that regulate the transcription of adjacent genes, influencing their expression without altering the genetic code.

Morphological Adaptation

Morphological adaptation involves changes in an organism's physical structure to improve its chances of survival in its environment.

Vertebrate Eye

A complex organ in vertebrates that allows for vision by detecting light and converting it into neural signals.

Genetic Engineering

The deliberate modification of the characteristics of an organism by manipulating its genetic material.