A Change from the Straight-Line Method to the Sum-Of-Years'-Digits Method

question 182

Multiple Choice

A change from the straight-line method to the sum-of-years'-digits method of depreciation is handled as:

• A) A retrospective change back to the date of acquisition as though the current estimated life had been used all along.
• B) A cumulative adjustment to income in the current year for the difference in depreciation under the new versus old useful life estimate.
• C) A prospective change from the current year through the remainder of its useful life.
• D) None of these answer choices are correct.

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Definitions:

Charisma

A personal quality attributed to leaders who arouse fervent popular devotion and enthusiasm.

Leader Traits

Refers to inherent qualities or characteristics that distinguish effective leaders from others, including intelligence, confidence, charisma, and integrity.

Transformational Leaders

Leaders who inspire and motivate their followers to exceed their own interests for the good of the organization or society.

Bass

Referring to Bernard Bass, a prominent researcher in the field of leadership, particularly known for his work on transformational leadership.