Doug Smith Industries Purchased Warehouses for $55 Million (No Residual

Doug Smith Industries purchased warehouses for $55 million (no residual value) at the beginning of 2015. The warehouses were being depreciated over a 10-year life using the sum-of-the-years'-digits method. At the beginning of 2018, management decided to change to straight-line.
-An accompanying disclosure note would include each of the following except:

A) The cumulative effect of the change.
B) Justification that the change is preferable.
C) The effect of a change on any financial statement line items affected for all periods reported.
D) The effect of a change on per share amounts affected for all periods reported.

Correct Answer:

Verified

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