Norzani, Inc., has a popular line of sunglasses. Norzani reported net income of $66 million for 2010.

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Norzani, Inc., has a popular line of sunglasses. Norzani reported net income of $66 million for 2010. Depreciation expense for the year totaled $32 million. Norzani, Inc., depreciates plant assets over eight years using the straight-line method and no residual value. Norzani, Inc., paid $256 million for plant assets at the beginning of 2010. Then at the start of 2011, Norzani switched over to double-declining-balance (DDB) depreciation. 2011 is expected to be the same as 2010 except for the change in depreciation method. If Norzani had been using DDB depreciation all along, how much net income can Norzani, Inc., expect to earn during 2011? Ignore income tax.

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Financial accounting

ISBN: 978-0136108863

8th Edition

Authors: Walter T. Harrison, Charles T. Horngren, William Bill Thomas

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