Question: Bailey Corp changed depreciation methods in 2011 from straight line to

Bailey Corp. changed depreciation methods in 2011 from straight-line to double-declining-balance because management argued that the change would improve the relevance of the information to financial statement readers. The assets involved were acquired early in 2008 for $185,000 and had an estimated useful life of eight years, with no residual value. The 2011 income using the double-declining-balance method was $490,000. Bailey had 10,000 common shares outstanding all year. What is the effect of the accounting change on the reported income and EPS for 2011? Bailey follows IFRS. Ignore income taxes.

View Solution:


Sale on SolutionInn
Sales0
Views58
Comments
  • CreatedAugust 23, 2015
  • Files Included
Post your question
5000