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

question 122

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. What adjustment is needed for fiscal 2020?

• A)$14,100
• B)$15,900
• C)$24,000
• D)$30,000

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Definitions:

The Flu

A common viral infection that affects the respiratory system, including the nose, throat, and lungs; also known as influenza.

A Cold

A common viral infection that affects the nose, throat, and sinuses, causing symptoms such as sneezing and coughing.

Pneumonia

A condition of lung inflammation usually caused by bacterial or viral infection, resulting in difficulty breathing and other symptoms.

Community College

A type of educational institution providing higher education and lower-level tertiary education, granting certificates, diplomas, and associate's degrees.