Accelerated method of calculating depreciation


A company changes from straight-line to an accelerated method of calculating depreciation, which will be similar to the method used for tax purposes. The entry to record this change should include a:

A) credit to Accumulated Depreciation.

B) debit to Retained Earnings in the amount of the difference on prior years.

C) debit to Deferred Tax Asset.

D) credit to Deferred Tax Liability.

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Accounting Basics: Accelerated method of calculating depreciation
Reference No:- TGS067369

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