Flagler Company purchased equipment that cost $90,000. The equipment had a useful life of 5 years and a $10,000 salvage value. Flagler uses the double-declining-balance method. Which of the following choices accurately reflects how the recognition of the first year's depreciation would affect the financial statements? Balance Sheet Income Statement Assets = Liabilities + A. (32,000) Not affected B. (16,000) Not affected C. (36,000) Not affected D. (36,000) Not affected Multiple Choice O OOO Option D Option B Option C Option A Stockholders' Equity (32,000) (16,000) (36,000) (36,000) Revenue Not affected Not affected 16,000 Not affected 36,000 36,000 Not affected Expense 32,000 Net Income (32,000) (16,000) (36,000) (36,000) Statement of Cash Flows (32,000) Operating activity Not affected (36,000) Operating activity Not affected

Flagler Company purchased equipment that cost $90,000. The equipment had a useful life of 5 years and a $10,000 salvage value. Flagler uses the double-declining-balance method. Which of the following choices accurately reflects how the recognition of the first year's depreciation would affect the financial statements? Balance Sheet Income Statement Assets = Liabilities + A. (32,000) Not affected B. (16,000) Not affected C. (36,000) Not affected D. (36,000) Not affected Multiple Choice O OOO Option D Option B Option C Option A Stockholders' Equity (32,000) (16,000) (36,000) (36,000) Revenue Not affected Not affected 16,000 Not affected 36,000 36,000 Not affected Expense 32,000 Net Income (32,000) (16,000) (36,000) (36,000) Statement of Cash Flows (32,000) Operating activity Not affected (36,000) Operating activity Not affected

Name: Flagler Company purchased equipment that cost $90,000. The equipment
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Description: Flagler Company purchased equipment that cost $90,000. The equipment had a useful life of 5 years and a $10,000 salvage value. Flagler uses the double-declining-balance method. Which of the following choicesaccurately reflects how the recognition of

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter22: Accounting For Changes And Errors.

Section: Chapter Questions

Problem 7RE: Bliss Company owns an asset with an estimated life of 15 years and an estimated residual value of...

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