Multiple Choice
The method of depreciation was changed from the double-declining-balance method to the straight-line method in fiscal 2022. A machine was purchased on January 1, 2020, at a cost of $150,000. The machine has an estimated useful life of 10 years and a residual value of $9,000. Assume that net income before tax (NIBT) was $80,000 for fiscal 2020. What is the appropriate accounting for fiscal 2020?
A) Retrospective adjustment and revised NIBT of $110,000.
B) Retrospective adjustment and revised NIBT of $95,900.
C) Retrospective adjustment and revised NIBT of $65,900.
D) No accounting is necessary in fiscal 2020.
Correct Answer:
Verified
Correct Answer:
Verified
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