On January 2,2016,Tobias Company Began Using Straight-Line Depreciation for a Certain

Multiple Choice

On January 2,2016,Tobias Company began using straight-line depreciation for a certain class of assets.In the past,the company had used double-declining-balance depreciation for these assets.As of January 2,2016,the amount of the change in accumulated depreciation is $40,000.The appropriate tax rate is 40%.The separately reported change in 2016 earnings is:

A) An increase of $40,000.
B) A decrease of $40,000.
C) An increase of $24,000.
D) None of these answer choices is correct.