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NEW QUESTION: 1
On January 1, 20X1, Pell Corp. purchased a machine having an estimated useful life of 10 years and no
salvage. The machine was depreciated by the double declining balance method for both financial
statement and income tax reporting. On January 1, 20X6, Pell changed to the straight-line method for
financial statement reporting but not for income tax reporting. Accumulated depreciation at December 31,
2 0X5, was $560,000. If the straight-line method had been used, the accumulated depreciation at
December 31, 20X5, would have been $420,000. Pell's enacted income tax rate for 20X6 and thereafter is
3 0%. The amount shown in the 20X6 income statement for the cumulative effect of changing to the
straight-line method should be:
A. $140,000 credit.
B. $0.
C. $98,000 credit.
D. $98,000 debit.
Answer: B
Explanation:
Choice "d" is correct. A change in the method of depreciation is now considered to be both a change in
method and a change in estimate. These changes should be accounted for as changes in estimate and
handled prospectively. The new depreciation method should be used as of the beginning of the year of
change and should start with the current book value of the underlying asset. No retroactive or
retrospective calculations should be made, and no adjustment should be made to retained earnings. And,
certainly, the cumulative effect should not be reflected on the income statement any more. Choices "a",
"b", and "c" are incorrect, per the above Explanation: .
NEW QUESTION: 2
DRAG DROP
Answer:
Explanation:
NEW QUESTION: 3
Given:
What is the result?
A. An exception is thrown at runtime.
B. Compilation fails.
C. tolting cantering cantering
D. tolting cantering tolting
E. riding riding cantering
F. riding riding tolting
Answer: B
Explanation:
The compilation fails at:
interface Rideable {
public String ride() { return "riding ";}
}
Error due to: interface methods cannot have body.
NEW QUESTION: 4
Which of the following is an advantage of using single-mode fiber?
A. Smaller cable
B. Longer distance
C. Greater turn radius
D. Sturdier cable plant
Answer: B
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