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

question 35

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 2021?

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

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Definitions:

Products Produced

The output or the goods that are manufactured or created as a result of a production process.

Pricing Objective

Refers to a company's goal related to the pricing of its products or services, which could include maximizing profits, increasing market share, or achieving price stability.

Market Share

The percentage of total sales in a market captured by a particular company, product, or brand, indicating its competitiveness and standing in the market.

Dollar Sales Revenue

The total amount of money generated from sales of goods or services, expressed in dollar terms.