Answer the following question:

Blue Corp. changed its policy for accounting for certain staff training costs in 20X5. Previously, the costs were capitalized and amortized straight-line over three years, starting with the year of the expenditure. The new policy is to expense training costs as incurred. A total of $45,000 was spent in 20X3, $0 in 20X4, and $60,000 in 20X5. The 20X5 expense has not yet been recorded, but the $60,000 was capitalized to the intangible asset when the money was spent. The tax rate is 30%.

Show how $35000 was calculated in 20X5 as well as why cumulative effect and cumulative effect, after tax is N/A.

	Amortization	Expense	Cumulative Effect	Cumulative Effect, after tax
20X3	15000	45000	-30000	-21000
20X4	15000	0	-15000	-10500
20X5	35000	60000	N/A	N/A