A company changes from the straight-line method to an accelerated method of calculating depreciation, which will be similar to the method used for tax purposes. The entry to record this change will include a O credit to Accumulated Depreciation. O debit to Retained Earnings in the amount of the difference on prior years. O debit to Deferred Tax Asset. O credit to Deferred Tax Liability.
A company changes from the straight-line method to an accelerated method of calculating depreciation, which will be similar to the method used for tax purposes. The entry to record this change will include a O credit to Accumulated Depreciation. O debit to Retained Earnings in the amount of the difference on prior years. O debit to Deferred Tax Asset. O credit to Deferred Tax Liability.
Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Chapter6: Accounting Quality
Section: Chapter Questions
Problem 2IC
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