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On 01/01/2016 the company purchased equipment by JD 150,000 and it used the fixed depreciation method. The useful life was 7 years and at the
On 01/01/2016 the company purchased equipment by JD 150,000 and it used the fixed depreciation method. The useful life was 7 years and at the same time the salvage value at the end of the period is JD 5,000. The comprehensive income statement on 31/12/2019 before any changes in the accounting estimates as follows: 2019 JD 2018 JD Profit before tax 2,200,000 1,800,000 Tax 20% (440,000) (360,000) Net profit 1,760,000 1,440,000 On 31/12/2019 the company decided to change the useful life of the equipment to become 10 years and the salvage value to become JD 10,000. So, what the effect of this change on the comprehensive income statement on 31/12/2019
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