please help and give correct answer with steps so that I can understand the process million thanks no copy paste Concord Company placed an asset in service on January 2, 2015. Its cost was $1,134,000 with an estimatedservice life of 6 years. Salvage value was estimated to be $99,000. Using the doubledeclining-balance method ofdepreciation, the depreciation for 2015, 2016, and 2017 would be $378,000, $252,000, and $168,000respectively. During 2017 the company's management decided to change to the straight-line method ofdepreciation. Assume a 35% tax rate.(a)Your answer is correct.How much depreciation expense will be reported in the income from continuing operations of the company'sincome statement for 2017? (Hint: Use the new depreciation in the current year.)Depreciation expense $101250 (b)What amount will be reported as an adjustment to the beginning balance of retained earnings to reflect theeffect of the change in accounting principle? (Enter O if no amount is to be reported. Do not leave anyfield blank.)Adjustment to the beginning balance of retained earnings10

Every organization uses some assets to conduct business, such as equipment, machinery, motors, and…

What amount will be reported as an adjustment to the beginning balance of retained earnings to reflect the effect of the change in accounting principle? (Enter O if no amount is to be reported. Do not leave any field blank.) Adjustment to the beginning balance of retained earnings $

What amount will be reported as an adjustment to the beginning balance of retained earnings to reflect the effect of the change in accounting principle? (Enter O if no amount is to be reported. Do not leave any field blank.) Adjustment to the beginning balance of retained earnings $

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter10: Long-lived Tangible And Intangible Assets

Section: Chapter Questions

Problem 22E

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Question

please help and give correct answer with steps so that I can understand the process million thanks no copy paste

Concord Company placed an asset in service on January 2, 2015. Its cost was $1,134,000 with an estimated
service life of 6 years. Salvage value was estimated to be $99,000. Using the doubledeclining-balance method of
depreciation, the depreciation for 2015, 2016, and 2017 would be $378,000, $252,000, and $168,000
respectively. During 2017 the company's management decided to change to the straight-line method of
depreciation. Assume a 35% tax rate.
(a)
Your answer is correct.
How much depreciation expense will be reported in the income from continuing operations of the company's
income statement for 2017? (Hint: Use the new depreciation in the current year.)
Depreciation expense $
101250

(b)
What amount will be reported as an adjustment to the beginning balance of retained earnings to reflect the
effect of the change in accounting principle? (Enter O if no amount is to be reported. Do not leave any
field blank.)
Adjustment to the beginning balance of retained earnings
10

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