On January 1, 2019, Nobel Corporation acquired machinery at a cost of P600,000. 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 2022, a decision was made to change to the double-declining balance method of depreciation for this machine. Assuming a 30% tax rate, the cumulative effect of this accounting change on beginning retained earnings, is (A) P112,800.

On January 1, 2019, Nobel Corporation acquired machinery at a cost of P600,000. 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 2022, a decision was made to change to the double-declining balance method of depreciation for this machine. Assuming a 30% tax rate, the cumulative effect of this accounting change on beginning retained earnings, is (A) P112,800.

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Description: On January 1, 2019, Nobel Corporation acquired machinery at a cost of P600,000. Nobel adopted the straight-line methodof depreciation for this machine and had been recording depreciation over an estimated life of ten years, with no residualvalue. At

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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