36. Which of the following should be reported as an adjustment to the beginning balance of retained earnings? Change in Useful Life of Equipment Yes Change from a Non-GAAP Principle to GAAP Principle Yes Yes No No No Yes No Select one: A B D 37. During the calendar year ending 2019, Casper Inc. decided to change its inventory method to the FIFO cost flow assumption for both GAAP and income tax reporting purposes. This change resulted in a $900,000 increase in the beginning of year inventory. The applicable tax is 30%. The effect of the accounting change should be reported by Casper in its 2019 A) Retained earnings statement as a $630,000 addition to the beginning balance. B) Income statement as a $630,000 cumulative effect of accounting change. C) Retained earnings statement as a $900,000 addition to the beginning balance. D) Income statement as a $900,000 cumulative effect of accounting change. Select one: A B D 38. Nevada Corp.'s comparative balance sheet at December 31, 2018 and 2017 reported the following: Accumulated depreciation balance on 12/31/18 = $1,245,000 Accumulated depreciation balance on 12/31/17 = $900,000 Equipment with a cost of $75,000 and a carrying amount of $57,000 was the only fixed asset sold in 2018. Depreciation expense for 2018 was A) $327,000. B) $345,000. C) $363,000. D) $402,000. Select one: A B C D