Exhibit 22-1

On January 1, 2016, the Chrissy Company purchased a machine for $450,000 with an estimate useful life of six years and a $30,000 salvage value. Straight-line depreciation was used for financial reporting purposes and MACRS depreciation for income tax reporting. Effective January 1, 2018, Chrissy switched to the double-declining-balance depreciation method for financial statement reporting but not for income tax purposes. Chrissy can justify the change.

____4.Refer to Exhibit 22-1. Assuming an income tax rate of 35%, the cumulative effect change reported in Chrissy's 2018 income statement would be

a.

$0

b.

$77,000

c.

$93,333

d.

$110,000