Description of this paper

Corporation acquired machinery at a cost of $1,200,000.

Description

solution


Question

On January 7, 2009, Yoder Corporation acquired machinery at a cost of $1,200,000. Yoder adopted the sum-of-the-years?-digits method of depreciation for this machine and had been recording depreciation over an estimated life of five years, with no residual value. At the beginning of 2011, a decision was made to change to the straight-line method of depreciation for this machine. Assuming a 30% tax rate, the cumulative effect of this accounting change, net of tax, is;a. $0;b. $160,000;c. $168,000;d. $240,000

 

Paper#26628 | Written in 18-Jul-2015

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