Change+in+Methods+Homework+Assignment

Change+in+Methods+Homework+Assignment - in methods using...

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Change in Methods Homework Assignment Equipment costing $6,000 with a estimate life of three year and a salvage value of zero has its depreciation methods changed from straight line to sum of the years digits during the second year. Requirement 1: Assume the Company has revenue for each of the three years of $5,000, a tax rate of 40% and uses straight line for tax reporting , make all necessary adjusting entries to account for the change
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Unformatted text preview: in methods using the retroactive approach. Requirement 2: Assume the Company has revenue for each of the three years of $5,000, a tax rate of 40% and uses sum of the years digits for tax reporting , make all necessary adjusting entries to account for the change in methods using the retroactive approach. Remark: Making depreciation and tax entries for all three years along with the correcting entry would be good practice....
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This note was uploaded on 08/02/2011 for the course ACCT 352 taught by Professor Freeman during the Summer '11 term at Windsor.

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