Question
Pinnacle Corporation has been using the straight-line depreciation method to depreciate some office equipment that was acquired at the beginning of 2013. At the beginning
Pinnacle Corporation has been using the straight-line depreciation method to depreciate some office equipment that was acquired at the beginning of 2013. At the beginning of 2016, Pinnacle decided to change to the sum-of-the-years'-digits method. The equipment cost $120,000 and is expected to have no salvage value. The estimated useful life of the equipment is five years. The tax rate is 30%. |
Required: |
Prepare the journal entry, if any, to record the accounting change at the beginning of 2016. B. Blue Co. can estimate the amount of loss that will occur if a foreign government expropriates some of the company's assets in that country. If the likelihood of expropriation is remote, a loss contingency should be: Disclosed but not accrued as a liability. Accrued as liability but not disclosed. Disclosed and accrued as a liability. Neither accrued as a liability nor disclosed. C. |
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