Kerusi, Inc., has a popular line of boogie boards. Kerusi reported net income of $64 million for 2012. Depreciation expense for the year totaled $30 million. Kerusi, Inc., depreciates plant assets over eight years using the straight-line method and no residual value.
Kerusi, Inc., paid $240 million for plant assets at the beginning of 2012. At the start of 2013, Kerusi changed its method of accounting for depreciation to double-declining-balance (DDB). 2013 is expected to be the same as 2012 except for the change in depreciation method. If Kerusi had been using DDB depreciation all along, how much net income can Kerusi, Inc., expect to earn during 2013? Ignore income tax.