Unstable Ltd Has Decided to Change Its Depreciation Method from Straight-Line

Multiple Choice

Unstable Ltd has decided to change its depreciation method from straight-line to reducing balance.As a result,its annual depreciation expense increases by $200 000.The company's income tax rate is 30 per cent.
-What is the effect on ROA,which was 20 per cent prior to the change?

A) It increases.
B) It decreases.
C) There is no effect.
D) It cannot be determined from the information provided.