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Marcie D Marcie D
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5 years ago
Information for a firm making an accounting change follows:
20x0 20x1
Revenues $1,000 $2,500
Expenses other than depreciation and tax 600 1,100
Tax rate: 30%
Common shares outstanding entire year for both years: 100;
Retained earnings, 1/1/x0: $6,000
The firm changes from SYD to SL depreciation in 20x1 for financial
reporting purposes only.
Depreciation: Total before 20x0 20x0 20x1
SYD $4,000 $200 $400
SL 3,500 100 300
Required:
(a) The 20x1 entries to record the accounting change and depreciation expense for 20x1.
(b) The comparative 20x0 and 20x1 income statements including pro forma disclosures if needed,
EPS, and any disclosure footnote required.
Textbook 
Intermediate Accounting, Volume 2

Intermediate Accounting, Volume 2


Edition: 5th
Authors:
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ldill01ldill01
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Marcie D. Author
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5 years ago
Answer's right Perfect
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