Question: On January 1 , 2 0 2 2 , Cullumber Corporation acquired machinery for $ 1 6 1 0 0 0 0 . Cullumber adopted

On January

1, 2022,

Cullumber Corporation acquired machinery for $

1610000 .

Cullumber adopted the straight

-

line method of depreciation for this machine and had been recording depreciation over an estimated life of ten years, with no residual value. At the beginning of

2025,

a decision was made to change to the double

-

declining balance method of depreciation for this machine.

Assuming a

20 %

tax rate, the cumulative effect of this accounting change on beginning retained earnings, is

0 .

242144 .

302680 .

180320 .

On January 1,2022, Cullumber Corporation acquired machinery for $1610000. Cullumber adopted

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