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Multiple Choice Question 41 On January 1, 2016, Sunland Corporation acquired equipment at a cost of $786000. Sunland adopted the sum-of-the-years'-digits method of depreciation for

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Multiple Choice Question 41 On January 1, 2016, Sunland Corporation acquired equipment at a cost of $786000. Sunland adopted the sum-of-the-years'-digits method of depreciation for this equipment and had been recording depreciation over an estimated life of 8 years, with no residual value. At the beginning of 2019, a decision was made to change to the straight-line method of depreciation for this equipment. The depreciation expense for 2019 would be O $40938. O $157200. $65500. O $98250. Multiple Choice Question 50 Oriole Company began operations on January 1, 2017, 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 LIFO Net Income (computed under the FIFO method) 2017 $620000 530000 930000 2018 $ 682000 636000 1250000 Based on the above information, a change to the LIFO method in 2018 would result in net income for 2018 of O $1160000. O $930000. $1204000. O $1250000

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