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Anna71 [15]
3 years ago
14

In 2021, 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 2021 would have been $18 million higher had the new life been used. Barney's tax rate is 25%. Barney's retained earnings as of December 31, 2021, would be:
Business
1 answer:
Nikitich [7]3 years ago
8 0

Answer: unaffected

Explanation:

We should note that a retrospective adjustment isn't necessarily needed when there's an alternation to a accounting estimate.

With regards to this Barney's retained earnings as of December 31, 2021, would neither be understated or overstated but would be unaffected.

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