20–38. Accumulated Depreciation—Equipment 100,000 Cumulative Effect of Change in Accounting Principle 100,000 computations

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• 2002 (5/15  $500,000) = $166,667 $100,000 2003 (4/15  $500,000) = 133,333 100,000 2004 (3/15  $500,000) = 100,000 100,000
• 2005 2004 Income from continuing operations $ 892,679* $ 856,000 Cumulative effect on prior years of changing from
• Earnings per share of common stock: Income before cumulative effect of change in accounting principle $4.46 $4.28

Chapter 20 CHAPTER 20 PROBLEMS 20–38. 1. Accumulated Depreciation—Equipment 100,000 Cumulative Effect of Change in Accounting Principle 100,000 COMPUTATIONS: Sum-of-the-years’ digits Straight-line 2002 (5/15  $500,000) = $166,667 $100,000 2003 (4/15  $500,000) = 133,333 100,000 2004 (3/15  $500,000) = 100,000 100,000 $400,000 $300,000 Cumulative effect of change in accounting principle: $400,000 – $300,000 = $100,000 2. Comparative data: 2005 2004 Income from continuing operations $ 892,679* $ 856,000 Cumulative effect on prior years of changing from accelerated to straight-line depreciation on equipment 100,000 Net income $ 992,679 $ 856,000 Earnings per share of common stock: Income before cumulative effect of change in accounting principle $4.46 $4.28 Cumulative effect of change in depreciation method 0.50 Net income $4.96 $4.28 Directory: Courses Courses -> Ams 1a fall 2014 Profs. Guenter, Jackson, Lo Paper #1: The Role of the Supreme Court Due: October 29, 2014 in seminar Courses -> Organization of American Historians Courses -> United states history Courses -> Thus Far… Chittick created a framework with which we can analyze and better understand foreign policies Courses -> Canadian Perspectives on Law and Society: Issues in Legal History Courses -> Elayne A. Saltzberg and Joan C. Chrisler Beauty Is the Beast: Psychological Effects of the Pursuit of the Perfect Female Body Courses -> Survey of American Literature: Modern Warfare and American Literature Courses -> Article Review Scientific Style (cse) Courses -> Brandt Schafer Applied Ethics Download 56 Kb. Share with your friends: