hicho Question Completion Status: QUESTION 19 4 points Save Answer Lundholm Company purchased a machine for $106,100 on January 1, 2019. Lundholm deprecates machines of this type by the straight-line method over a 10- year period using no salvage value. Due to a change in sales patterns, on January 1, 2021, management determines the useful life of the machine to be a total of five years. What amount should Lundholm record for depreciation expense for 2021? The tax rate is 25. O $28,293. O $56,586. O $25,641. $3,537. QUESTION 20 4 points Save Answer Red Corp. constructed a machine at a total cost of $70 million. Construction was completed at the end of 2017 and the machine was placed in service at the beginning of 2018. The machine was being depreciated aver a 10 year life using the straight-line method. The residual value is expected to be $4 million. At the beginning of 2021, Red decided to change to the sum-of-the-years-digits method. Ignoring income taxes, what will be Red's depreciation expense for 2021? O $11.95 million 0 $4,80 million. O $6.60 million. O $5.40 million QUESTION 21 4 points Save Answer Under its executive stock option plan, N Corporation granted options on January 1, 2021, that permit executives to purchase 15 million of the company's $1 par common shares within the next eight years, but not before December 31, 2023 (the vesting date). The exercise price is the market price of the shares on the date of grant, $18 per share. The fair value of the options, estimated by an appropriate aption pricing madel, is $4 per option. Na forfeitures are anticipated. Ignoring taxes, what is the effect on earnings in the year after the options are granted to executives? O $20 million. O $0. $90 million. O $60 million. QUESTION 22 4 points Save Answer When recognizing compensation under a stack option plan, unanticipated forfeitures are treated as: O A change in accounting principle Aloss. O An Income item. O A change in estimate