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Use the following information for Problem 5. I Ventura Corporation purchased machinery on January 1, 2019 for $630,000. The company used the sum-of-the-years'-digits method and

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Use the following information for Problem 5. I Ventura Corporation purchased machinery on January 1, 2019 for $630,000. The company used the sum-of-the-years'-digits method and no salvage value to depreciate the asset for the first two years of its estimated six-year life. In 2020, Ventura changed to the straight-line depreciation method for this asset. The following facts pertain: 2019 2020 Straight-line P105,000 P105,000 Sum-of-the-years'-digits 180,000 150,000 Ventura is subject to a 40% tax rate. The cumulative effect of this accounting change on beginning retained earnings is a. P135,000. b. P120,000. C. P72,000. d. PO. $0, No cumulative effect; handle prospectively. The amount that Ventura should report for depreciation expense on its 2021 income statement is a. P120,000. b. P105,000. C. P75,000. d. none of the above.Problem 6. Joseph Co. began operations on January 1, 2019. Financial statements for 2019 and 2020 contained the following errors: Dec. 31, 2019 Dec. 31, 2020 Ending inventory P90,000 too high P114,000 too high Depreciation expense 48,000 too low Accumulated depreciation 48,000 too low 48,000 too low Insurance expense 42,000 too high 42,000 too low Prepaid insurance 36,000 too low In addition, on December 26, 2020 fully depreciated equipment was sold for p 58,000, but the sale was not recorded until 2021. No corrections have been made for any of the errors. Instructions Ignoring income taxes, show your calculation of the total effect of the errors on 2020 net income

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