Question: On January 1 , 2 0 2 2 , Pharoah Corporation acquired machinery for $ 1 6 4 0 0 0 0 . Pharoah adopted

On January

1, 2022,

Pharoah Corporation acquired machinery for $

1640000 .

Pharoah 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 .

308320 .

246656 .

183680 .

Please give a detail answer and steps

,

Thanks

On January 1,2022, Pharoah Corporation acquired machinery for $1640000. Pharoah adopted

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