Exhibit 23-1 On January 1, 2010, the Carol Company purchased a machine for $450, 000 with an estimate useful life of six years and a $30, 000 salvage value.Straight-line depreciation was used for financial reporting purposes and MACRS depreciation for income tax reporting.Effective January 1, 2012, Carol switched to the double-declining-balance depreciation method for financial statement reporting but not for income tax purposes.Carol can justify the change.
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Refer to Exhibit 23-1.Assuming an income tax rate of 30%, depreciation expense related to the equipment reported in Carol's 2012 income statement would be
A)$ 70, 000
B)$108, 500
C)$140, 000
D)$155, 000

Question

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The Answer of Exhibit 23-1 On January 1, 2010, the Carol Company purchased a machine for $450, 000 with an estimate useful life of six years and a $30, 000 salvage value.Straight-line depreciation was used for financial reporting purposes and MACRS depreciation for income tax reporting.Effective January 1, 2012, Carol switched to the double-declining-balance depreciation method for financial statement reporting but not for income tax purposes.Carol can justify the change.
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Refer to Exhibit 23-1.Assuming an income tax rate of 30%, depreciation expense related to the equipment reported in Carol's 2012 income statement would be
A)$ 70, 000
B)$108, 500
C)$140, 000
D)$155, 000

Exhibit 23-1 on January 1, 2010, the Carol Company Purchased