On January 2, 2013, Tobias Company began using straight-line depreciation for a certain class of assets. In the past, the company had used double-declining-balance depreciation for these assets. As of January 2, 2013, the amount of the change in accumulated depreciation is $40,000. The appropriate tax rate is 40%. The separately reported change in 2013 earnings is:
A)An increase of $40,000.
B)A decrease of $40,000.
C)An increase of $24,000.
D)None of the above is correct.

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The Answer of On January 2, 2013, Tobias Company began using straight-line depreciation for a certain class of assets. In the past, the company had used double-declining-balance depreciation for these assets. As of January 2, 2013, the amount of the change in accumulated depreciation is $40,000. The appropriate tax rate is 40%. The separately reported change in 2013 earnings is:
A)An increase of $40,000.
B)A decrease of $40,000.
C)An increase of $24,000.
D)None of the above is correct.

On January 2, 2013, Tobias Company Began Using Straight-Line Depreciation