Answered

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On January 2, 2021, Tobias Company began using straight-line depreciation for a certain class of assets. In the past, the company had used double-declining-balance depreciation for these assets. As of January 2, 2021, the amount of the change in accumulated depreciation is $46,500. The appropriate tax rate is 25%. The separately reported change in 2021 earnings is: Multiple Choice An increase of $46,500. A decrease of $46,500. An increase of $34,875. None of these answer choices are correct.

Sagot :

Answer: None of these answer choices are correct.

Explanation:

Based on the information given, it should be noted that the separately reported change in 2021 earnings will be option D "None of these answer choices are correct".

We should note that the change in the depreciation method will be reported prospectively. Therefore isn't any separately reported change in the earnings.

Therefore, the correct option is D

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