Which of the following are affected by changing the rate of depreciation in the year of the change?

Question

Quizplus · Accepted Answer

i. Profit or loss for the year: A change in the rate of depreciation will affect the amount of depreciation expense for the year, which will in turn affect the profit or loss for the year.
ii. Depreciated cost of fixed assets: The change in the rate of depreciation will affect the accumulated depreciation of the assets, which will affect the depreciated cost of the assets.
iii. Tax liability: The taxable income will be affected by the change in the rate of depreciation, which will in turn affect the tax liability.

Which of the Following Are Affected by Changing the Rate