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Unformatted text preview: the current year. _____ 5. In the current year, the company decides to change from expensing certain costs to capitalizing these costs, due to a change in the period benefited. _____ 6. During 2011, a long-term bond with a carrying value of $3,600,000 was retired at a cost of $4,100,000. _____ 7. After negotiations with the IRS, income taxes for 2009 were established at $42,900. They were originally estimated to be $28,600. _____ 8. In 2011, the company incurred interest expense of $29,000 on a 20-year bond issue. _____ 9. In computing the depreciation in 2009 for equipment, an error was made which overstated income in that year $75,000. The error was discovered in 2011. 10. In 2011, the company changed its method of depreciating plant assets from the double-declining balance method to the straight-line method...
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This note was uploaded on 03/25/2012 for the course ACCOUNTING 20 taught by Professor Robinson during the Spring '09 term at UC Riverside.
- Spring '09