Chang Company has a December 31 year end. In year 7 it bought a piece...
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Accounting
Chang Company has a December year end. In year it bought a piece of equipment at the start of the year for $ and employed straight line depreciation over years with an estimated residual value of $ At the start of year Chang decides to change the depreciation method to double declining balance same life and salvage This is considered a change in accounting policy and you are asked to solve it
Required : What is the amount of Depreciation Expense reported at December st of Year before knowing the accounting policy will change? $
Required : What is the amount of Depreciation Expense to be reported for the year ended December st of Year $
Required : What is the amount of Accumulated Depreciation that is retroactively recognized for year when depreciation method is changed? $
Required : What is the Net Book Value of the equipment on December st of Year before knowing the accounting policy will change? $
Required : What is the Net Book Value of the equipment on December st of Year $
Required : If Net Income has to be retroactively restated, by how much Net Income of Year will increase decrease when the change in accounting policy becomes effective in year
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