6. During 2020, Mannix Company determined that machinery being depreciated by the straight-line method over a 10-year life had a total estimated life of only 7 years. The machinery was acquired on 1/1/18 at a cost of $400,000; it was expected to have a residual of $50,000 (which is unchanged). If the 7-year life had been used, accumulated depreciation would have been $100,000 at 12/31/19 instead of $70,000. Ignoring income taxes, what should be reported in Mannix's income statement for the year ended 12/31/20 as the depreciation expense for 2020 and what adjustment will be made to the beginning balance of retained earnings as reported for 1/1/20? a. $21,000 and $0. b. $56,000 and $0. c. $35,000 and $30,000. d. $56,000 and $30,000.

6. During 2020, Mannix Company determined that machinery being depreciated by the straight-line method over a 10-year life had a total estimated life of only 7 years. The machinery was acquired on 1/1/18 at a cost of $400,000; it was expected to have a residual of $50,000 (which is unchanged). If the 7-year life had been used, accumulated depreciation would have been $100,000 at 12/31/19 instead of $70,000. Ignoring income taxes, what should be reported in Mannix's income statement for the year ended 12/31/20 as the depreciation expense for 2020 and what adjustment will be made to the beginning balance of retained earnings as reported for 1/1/20? a. $21,000 and $0. b. $56,000 and $0. c. $35,000 and $30,000. d. $56,000 and $30,000.

Name: 6. During 2020, Mannix Company determined that machinery being deprec
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Description: 6. During 2020, Mannix Company determined that machinery being depreciated by the straight-linemethod over a 10-year life had a total estimated life of only 7 years. The machinery was acquired on1/1/18 at a cost of $400,000; it was expected to have

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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