A Company Changes from Straight-Line to an Accelerated Method of Calculating

Multiple Choice

A company changes from straight-line to an accelerated method of calculating depreciation, which will be similar to the method used for tax purposes.The entry to record this change should include a

A) credit to Accumulated Depreciation.
B) debit to Retained Earnings in the amount of the difference on prior years.
C) debit to Deferred Tax Asset.
D) credit to Deferred Tax Liability.