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At the beginning of 2018, a construction company that began operations

in 2016 changed from the completed-contract method to the percentage-of-completion method for accounting purposes but not for tax purposes. Gross profit figures under both methods for the past three years appear below:
Completed-Contract Percentage-of-Completion
2016 $ 950,000 $ 1,800,000
2017 1,250,000 1,900,000
2018 1,400,000 2,100,000


Assuming an income tax rate of 30% for all years, the effect of this accounting change on prior periods should be reported by f


Journal Entry at the beginning of 2018


4. What amount will be debited to "Construction in Process" account, to record the change at beginning of 2018?


5. What amount will be credited to "Deferred Tax Liability" account?


6. What amount will be credited to "Retained Earnings" account?
On January 1, 2016, Nobel Corporation acquired machinery at a cost of $1,600,000.
Nobel adopted the straight-line method of depreciation for this machine and had been recording depreciation over an estimated life of ten years, with no residual value. At the beginning of 2019, a decision was made to change to the double-declining balance method of depreciation for this machine.


7. Assuming a 30% tax rate, the cumulative effect of this accounting change on beginning retained earnings, is $??
On January 1, 2016, Nobel Corporation acquired machinery at a cost of $1,600,000. Nobel adopted the straight-line method of depreciation for this machine and had been recording depreciation over an estimated life of ten years, with no residual value. At the beginning of 2019, a decision was made to change to the double-declining balance method of depreciation for this machine.


8. . The amount that Nobel should record as depreciation expense for 2019 is $??
EXACT AMOUNT - DON'T ROUND

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