Popeye Company purchased a machine for $320,000 on January 1, 2020. Popeye depreciates machines of this type by the straight-line method over a five-year period using no salvage value. Due to an error, no depreciation was taken on this machine in 2020. Popeye discovered the error in 2021. What amount should Popeye record as depreciation expense for 2021? The tax rate is 25%.

Multiple Choice

• $48,000.

• $64,000.

• $96,000.

• $128,000.

Tangerine Corp. constructed a machine at a total cost of $448 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 over a 10-year life using the sum-of-the-years'-digits method. By that method, accumulated depreciation at the end of 2020 is $216.0 million. The residual value is expected to be $8.0 million. At the beginning of 2021, Tangerine decided to change to the straight-line method. Ignoring income taxes, what will be Tangerine's depreciation expense for 2021?

Multiple Choice

• $32.0 million.

• $36.0 million.

• $11.6 million.

• $58.0 million.

A company failed to record unrealized gains of $22 million on its available for sale debt security investments. Its tax rate is 25%. As a result of this error, comprehensive income would be: (Round your million answer to 2 decimal places.)

Multiple Choice

• Understated by $16.50 million.

• Understated by $5.50 million.

• Understated by $22.00 million.

• Unaffected.