reflected in beginning retained earnings or current earnings

Scroll down to complete all parts of this task. A company is assessing the impact that three accounting changes will have on its financial statements. For each of the three changes, determine the type of change, the dollar impact of the change, and where the change will be reflected. The depreciation method on a piece of equipment which cost $50,000 (with a 10 year life and $5,000 salvage value) was changed from accelerated to straight-line in Year 4. The old method was double declining balance. Inventory which was previously accounted for using Specific Identification is now 4 acoounted for using Average Cost. Pretax income was $375,000 and will now be $400,000. The effective tax rate is 35%. Select an option below Change in Accounting Entity Change in Accounting Estimate Change in Accounting Principle Change in Accounting Principle inseparable from a Change in Estimate Error Correction Scroll down to complete all parts of this task. A company is assessing the impact that three accounting changes will have on its financial statements. For each of the three changes, determine the type of change, the dollar impact of the change, and where the change will be reflected. The depreciation method on a piece of equipment which cost $50,000 (with a 10 year life and $5,000 salvage value) was changed from accelerated to straight-line in Year 4. The old method was double declining balance. Inventory which was previously accounted for using Specific Identification is now 4 acoounted for using Average Cost. Pretax income was $375,000 and will now be $400,000. The effective tax rate is 35%. Select an option below Change in Accounting Entity Change in Accounting Estimate Change in Accounting Principle Change in Accounting Principle inseparable from a Change in Estimate Error Correction