Examination III - Chapters 21, 22, and 23 Question 9 of 24 < > View Policies html/launchld=48b96ca0-1335-4e99-ba60-c1140857b441/question/8 -/3.75 Current Attempt in Progress Oriole Inc., a real estate developing company, was accounting for its long-term contracts using the completed contract method prior to 2021. In 2021, it changed to the percentage-of-completion method. The company decided to use the same for income tax purposes. The tax rate enacted is 40%. Income before taxes under both the methods for the past three years appears below. 2019 2020 2021 Completed contract $465000 $309000 $153000 Percentage-of-completion 765000 387000 285000 Which of the following will be included in the journal entry made by Oriole to record the income effect? OA credit to Retained Earnings for $154200 O Acredit to Retained Earnings for $226800 OA debit to Retained Earnings for $232200 OA debit to Retained Earnings for $154200 Save for Later Attempts: 0 of 1 used Submit Answer Question 10 of 24 View Policies Current Attempt in Progress -/3.75 E! Sheridan Inc., a real estate developing company, was accounting for its long-term contracts using the completed contract method prior to 2021. In 2021, it changed to the percentage-of-completion method. The company decided to use the same for income tax purposes. The tax rate enacted is 40%. Income before taxes under both the methods for the past three years appears below. 2019 2020 2021 Completed contract $475000 $315000 $155000 Percentage-of-completion 775000 395000 295000 What amount will be debited to Construction in Process account, to record the change at beginning of 2021? O $80000 O $380000 O $155000 O $220000 Save for Later Attempts: 0 of 1 used Submit Answer Question 11 of 24 < View Policies -/3.75 E Current Attempt in Progress Crane Company began operations on January 1, 2020, and uses the FIFO method in costing its raw material inventory. Management is contemplating a change to the LIFO method and is interested in determining what effect such a change will have on net income. Accordingly, the following information has been developed: Final Inventory FIFO 2020 2021 $540000 $692000 LIFO 500000 546000 Net Income (computed under the FIFO method) 960000 1410000 The company deems it impracticable to apply the retrospective approach. Based on the above information, a change to the LIFO method in 2021 would result in net income for 2021 of O $1264000. O $1410000. O $960000. O $1370000. Save for Later Attempts: 0 of 1 used Submit Answer Camerations https://education.wiley.com/was/ui/v2/assessment-player/indexhtml?launchid-48696ca0-1335-499-ba60-c1140857b4414/question/11 Examination III - Chapters 21, 22, and 23 Question 12 of 24 View Policies Current Attempt in Progress -/3.75 E On January 1, 2019, Sunland Corporation acquired machinery at a cost of $1710000. Sunland adopted the straight-line method of depreciation for this machine and had been recording depreciation over an estimated life of ten years, with no residual value. At the beginning of 2022, a decision was made to change to the double-declining balance method of depreciation for this machine. The amount that Sunland should record as depreciation expense for 2022 is O $171000. $0. O $342000. O $513000. Save for Later Attempts: 0 of 1 used Submit