Prior to 2016,Trapper John Inc

Prior to 2016,Trapper John Inc.used sum-of-the-years'-digits depreciation on its store equipment.Beginning in 2016,Trapper John decided to use straight-line depreciation for these assets.The equipment cost $3 million when it was purchased at the beginning of 2014,had an estimated useful life of five years and no estimated residual value.To account for the change in 2016,Trapper John:

A) Would retrospectively report $600,000 in depreciation expense annually for 2014 and 2015,and report $600,000 in depreciation expense for 2016.
B) Would adjust accumulated depreciation and retained earnings for the excess charges made in 2014 and 2015.
C) Would report depreciation expense of $400,000 in its 2016 income statement.
D) None of these answer choices is correct.

Correct Answer:

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