In 2016,due to a Change in Marketing Forecasts,Barney Corporation Reduced

question 47

Multiple Choice

In 2016,due to a change in marketing forecasts,Barney Corporation reduced the projected life of its patent for producing round dice.The cumulative patent amortization prior to 2016 would have been $10 million higher had the new life been used.Barney's tax rate is 30%.Barney's retained earnings as of December 31,2016,would be:

• A)Overstated by $7 million.
• B)Overstated by $3 million.
• C)Overstated by $10 million.
• D)Unaffected.

---

Definitions:

Graduate Program

An advanced course of study that follows a bachelor's degree, typically leading to a master's or doctoral degree.

National Group

A collective of individuals or entities sharing common nationality or national identity, often used in studies to represent a country's population.

Programme for International Student Assessment

An international study evaluating education systems worldwide by testing the skills and knowledge of 15-year-old students.

PISA

An international study (Programme for International Student Assessment) that evaluates education systems worldwide by testing the skills and knowledge of 15-year-old students.