Multiple Choice
Use the following information for questions.
Ventura Corporation purchased machinery on January 1, 2009 for $630,000.The company used the sum-of-the-years'-digits method and no salvage value to depreciate the asset for the first two years of its estimated six-year life.In 2010, Ventura changed to the straight-line depreciation method for this asset.The following facts pertain:
-Ventura is subject to a 40% tax rate.The cumulative effect of this accounting change on beginning retained earnings is
A) $135,000.
B) $120,000.
C) $72,000.
D) $0.
Correct Answer:

Verified
Correct Answer:
Verified
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