14. The effect of a change in accounting principle that cannot be separated from the effect of a change in accounting estimate should be reported: (a) As a correction of an error. (b) Asa separate item of income after income from continuing operations in the period of change and future periods if the change affects both. By restating the financial statements of all periods presented. As part of income from continuing operations in the period of change and future periods if the change affects both. (c) (d) 15. Vientiane, Inc. did not accrue warranty costs of S100,000 in its financial statements for fiscal year ending December 31, 20X0. In addition, the company changed depreciation methods from straight line to 200% declining balance on January 1, 20X1 for certain of its depreciable assets which resulted in a cumulative effect of $60,000 on the company's earnings. Both amounts are net of income taxes. What amount should Vientiane report as prior period adjustments in 20X1? (a) S160,000 (b) $ 60,000. (c) $100,000. (d) S 0 16. Which of the following is a change in accounting principle? (a) (b) (c) (d) Change from a non generally accepted accounting principle (GAAP) method to a GAAP method. Change from one GAAP method to another GAAP method. Change in the estimated life of a depreciable asset. Both (a) and (b) Which of the following types of accounting changes does not report a cumulative effect on the income statement? (a) Change from LIFO to weighted average inventory method. (b) Change in depreciation method. (c) Change in method of amortizing bond discount and premium. (d) The cumulative effect of changes in accounting principle are not 17. reported on the income statement