11) On December 31, 2021 Jersey Company changed its method of accounting for inventory from LIFO cost method to the FIFO method. This change caused the 2021 beginning inventory to increase by $500,000. The cumulative effect of this accounting change to be reported for the year ended December 31, 2021, assuming a 20% tax rate,

is?

12) Equipment was purchased at the beginning of 2019 for $600,000. At the time of its purchase, the equipment was estimated to have a useful life of five years and a salvage value of $100,000. The equipment was depreciated using the straight-line method of depreciation through 2021. At the beginning of 2022, the estimate of useful life was revised to a total life of seven years. The amount to be recorded for depreciation for 2022 is?

13) Green Inc. is a calendar-year corporation. Its financial statements for the years ended 12/31/20 and 12/31/21 contained the following errors:

2020 2021

Depreciation expense 15,000 overstatement 40,000 overstatement

Assume that the 2020 error was not corrected and that no errors occurred in 2019. By what amount will 2020 income before income taxes be overstated or understated?