Multiple Choice
Use the following information for questions 30-31.
Major Corp. purchased a machine on January 1, 2017, for $ 900,000. The machine is being depreciated on a straight-line basis, using an estimated useful life of six years and no residual value. On January 1, 2020, Major determined, as a result of additional information, that the machine had an estimated useful life of eight years from the date of acquisition with no residual value. An accounting change was made in 2020 to reflect this additional information.
-What is the amount of depreciation expense on this machine that should be reported in Major's income statement for calendar 2020?
A) $ 225,000
B) $ 180,000
C) $ 112,500
D) $ 90,000
Correct Answer:

Verified
Correct Answer:
Verified
Q55: Stockton Ltd. changed its inventory system from
Q56: On January 1, 2017, Cumberland Ltd. bought
Q57: What effect do accounting changes have on
Q58: Which of the following is (are) the
Q59: The underlying principle of the retrospective application
Q61: Provide and explain four reasons why companies
Q62: Use the following information for questions.<br>Cheyenne Ltd.'s
Q63: Recognition of accounting changes or corrections<br>For each
Q64: Conditions for a change in accounting policy
Q65: Use the following information for questions.<br>Cheyenne Ltd.'s