As a public accountant, you have been contacted by Joe Davison, CEO of Sports-Pro Athletics, Inc., a

Question:

As a public accountant, you have been contacted by Joe Davison, CEO of Sports-Pro Athletics, Inc., a manufacturer of a variety of athletic equipment. He has asked you how to account for the following changes.

1. Sports-Pro appropriately changed its depreciation method for its production machinery from the double-declining-balance method to the production method effective January 1, 2019.

2. Effective January 1, 2019, Sports-Pro appropriately changed the residual values used in computing depreciation for its office equipment.


Instructions

Write a 1-1.5 page letter to Joe Davison, explaining how each of the above changes should be presented in the December 31, 2019, financial statements.

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Related Book For  book-img-for-question

Intermediate Accounting IFRS

ISBN: 978-1119372936

3rd edition

Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield

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