Business
Business, 30.07.2019 05:20, joannamarquez0701

On january 1, year 1, warren co. purchased a $600,000 machine, with a 5-year useful life and no salvage value. the machine was depreciated by an accelerated method for book and tax purposes. the machine’s carrying amount was $240,000 on december 31, year 2. on january 1, year 3, warren changed to the straight-line method for financial statement purposes only. warren had planned the change in accordance with a consistently applied policy. warren’s income tax rate is 30%. in its year 3 financial statements, what amount should warren report as the cumulative effect of this change on the beginning balance of retained earnings if it issues single-period statements only?

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On january 1, year 1, warren co. purchased a $600,000 machine, with a 5-year useful life and no salv...

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