Four-H, Inc., changed from straight-line to an accelerated depreciation method for book purposes only in 2018. Data

Question:

Four-H, Inc., changed from straight-line to an accelerated depreciation method for book purposes only in 2018. Data for years affected by the change:

2017 2018 2016 Increase in depreciation due to change. Income computed under the SL method*. $. 20,000 $25,000 $ 30,000

*After tax; the tax rate is 40%. The income amount shown for 2018 was computed before considering the accounting change.
Required:
1. Provide the 2018 entry to record the accounting change.
2. What is reported net income for 2018?
3. What is the 2017 pro forma net income amount?

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Requirement 1 Cumulative effect of accounting change ...View the full answer

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Financial Accounting

ISBN: 978-0073526881

6th Edition

Authors: Libby, Short

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Question Posted: Jan 24, 2018 06:39 AM

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Four-H, Inc., changed from straight-line to an accelerated depreciation method for book purposes only in 2018. Data

Question:

2017 2018 2016 Increase in depreciation due to change. Income computed under the SL method*. $. 20,000 $25,000 $ 30,000 90,000 120,000 100,000

Step by Step Answer:

Requirement 1 Cumulative effect of accounting change ...View the full answer

Financial Accounting

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