For interim financial reporting,an extraordinary gain occurring in the second quarter should be: (a) Recognized evenly over the last three quarters. (b) Recognized evenly over all four quarters, with the first quarter being 11. (c) (d) restated. Recognized in the second quarter. Disclosed by footnote only in the second quarter. How should the effect of a change in accounting estimate be accounted for? (a Byrestating amounts reported in financial statements of prior periods. (b) By reporting pro forma amounts for prior periods. (c) As a prior period adjustment to beginning retained earnings. (d) In the period of change and future periods if the change affects both. 12. 13. On January 1, 20X0, a company purchased a machine for $600,000 and depreciated it by the straight line method using an estimated useful life of six years with no residual value. On January 1, 20X3, the company determined that the machine had a useful life of only five years from the date of acquisition and will have a residual value of s50,000. An accounting change was made in 20X3 to reflect these changes. What should be the balance in accumulated depreciation for this machine at December 31, 20X3? (a) $440,000. (b) $425,000. (c) $480,000. (d) $400,000