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lawyer [7]
2 years ago
9

On January 1, Year 7, Colorado Corp. purchased a machine having an estimated useful life of 8 years and no salvage value. The ma

chine was depreciated by the double-declining-balance (DDB) method for both financial statement and income tax reporting. On January 1, Year 9, Colorado justifiably changed to the straight-line method for both financial statement and income tax reporting. Accumulated depreciation at December 31, Year 8, was $525,000. If the straight-line method had been used, the accumulated depreciation at December 31, Year 8, would have been $300,000. The retroactive adjustment to the accumulated depreciation account on January 1, Year 9, as a result of the change in depreciation method is
Business
1 answer:
Ksju [112]2 years ago
3 0

Answer:

Colorado Corp.

The retroactive adjustment to the accumulated depreciation account on January 1, Year 9, as a result of the change in depreciation method is:

= $0.

Explanation:

a) Data and Calculations:

Accumulated depreciation at December 31, Year 8 based on double declining balance method = $525,000

Accumulated depreciation at December 31, Year 8 based on straight-line method = $300,000

The required adjustment to the accumulated depreciation account = $0 ($525,000 - $525,000)

b) The accumulated depreciation account does not require a retrospective adjustment.  It will remain at $525,000 while the company continues to apply the straight-line method going forward. The change is called a change in accounting estimate and not a change in accounting principle that requires retrospective application and adjustment to the previous years' accounts.

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Answer:

C. Increase

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In this case there was a boom in the economy which means the price of the shares he owns in the company will increase.

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The first step that an investor should take before  beginning to invest should be to establish investment objectives.
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Turnover Pulse hypothesis states that ____ eaters faced high rates of extinction during the ice ages
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2 years ago
A company uses the weighted average method for inventory costing. At the start of a period the production department had 28,000
yaroslaw [1]

Answer: $4.38

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Conversion costs are based on completed units so those units that are yet to be completed will be converted into equivalent units.

Units produced = Units completed and transferred out + equivalent WIP

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