*Problem 21-9 Sharma Corporation has decided that, in preparing its 2017 financial statements under IFRS, two changes should be made from the methods used in prior years: 1. Depreciation. Sharma has used the tax basis (CCA) method of calculating depreciation for financial reporting purposes. During 2017, management decided that the straight-line method should have been used to calculate depreciation for financial reporting purposes for the years prior to 2017 and going forward. The following schedule identifies the excess of depreciation based on CCA over depreciation based on straight-line, for the past years and for the current year: Excess of CCA-based Depreciation over Straight-Line Depreciation Calculated for Financial Statement Purposes $1,455,000 106,000 104,150 $1,665,150 Prior to 2016 2016 2017 Depreciation is charged 75% to cost of sales and 25% to selling, general, and administrative expenses