37.Poland Springs purchased a water Machine two years ago for $120,000 and the asset now has $20,000 in accumulated depreciation. At the beginning of Year 3, there was a revision in periodic depreciation and the company now estimates that the total estimated life should be six years with a salvage value of $12,000 at the end of that time. Poland Springs uses the straight-line method of depreciation for the machine. What is the amount of depreciation expense the company would recognize in Year 3? Select one: a. $14,700 b. $18,000 c. $22,000 d. $25,000

38 At the beginning of 2019, Bayside Co. changed from the recognition overtime (percentage-of-completion) to the completed-contract method for financial reporting purposes. The company will continue to use the completed-contract method for tax purposes. For years prior to 2019, pretax income under the two methods was as follows: percentage-of-completion $278,000, and completed-contract $231,000. The tax rate is 30%. In preparing its 2019 journal entry to record the change in accounting principle, Construction in Process would be credited by what amount?

Select one: a. $14,100 b. $32,900 c. $47,000 d. $231,000

39.At the beginning of 2019, Bayside Co. changed from the recognition overtime (percentage-of-completion) to the completed-contract method for financial reporting purposes. The company will continue to use the completed-contract method for tax purposes. For years prior to 2019, pretax income under the two methods was as follows: percentage-of-completion $278,000, and completed-contract $231,000. The tax rate is 30%. In preparing its 2019 journal entry to record the change in accounting principle, Deferred Tax Liability would be debited by what amount? Select one: a. $14,100 b. $231,000 c. $47,000 d. $32,900

40In 2020, Nike discovered that equipment purchased on January 1, 2019, for $63,000 was expensed at that time. The equipment should have been depreciated over 6 years using the straight-line method, with a $6,600 value. The effective tax rate is 40%. When preparing the 2020 correcting entry, Retained Earnings would be credited by what amount?

Select one: a. $63,000 b. $9,400 c. $21,440 d. $32,160

47For leases accounted for as operating leases Select one: a. the lessee continues to use the effective-interest method for amortizing the lease liability. b. the lessee continues to use its preferred method for amortizing the right-to-use asset. c. at the end of each period, the lessee reports the net amount of the lease liability and the right-to-use asset (either as an asset or a liability) on its balance sheet. d. the lessee is required to use the straight-line method for amortizing the right-to-use asset.