The Appleton Company purchases a building and compiles a double-declining balance depreciation schedule to use for the buildings 50-year life. After 30 years, the estimate of the salvage value changes. Based on this information, in the 31^st year, the accountant should:

a.

Adjust the amount of depreciation in future periods by subtracting the salvage value from the remaining book value before determining the amount of depreciation.

b.

Make an adjustment to accumulated depreciation and retained earnings to reflect the amount that would have been depreciated if the new salvage value had been subtracted from the book value in calculating the amount of depreciation

c.

Make an adjustment to accumulated depreciation and net income to reflect the amount that would have been depreciated if the new salvage value had been subtracted from the book value in calculating the amount of depreciation

d.

Depreciate the building based on the amount in the compiled depreciation schedule.

Oregon Company is in the process of preparing its financial statements for 2023. Assume that no entries for any depreciation or accounting changes have been recorded in 2023. The following information related to depreciation of fixed assets is provided to you:

During 2023, Oregon changed from the double-declining balance method for its building to the straight-line method. The building originally cost $800,000. It had an original useful life of 20 years and a salvage value of $100,000. Purchase date was 1/1/21.

Following all appropriate adjusting/closing journal entries, the 2023 depreciation expense for the building will be:

a.

$169,200

b.

$188,000

c.

$31,556

d.

$36,000

e.

$30,444