Doug Smith Industries purchased warehouses for $55 million (no residual value) at the beginning of 2015. The warehouses were being depreciated over a 10-year life using the sum-of-the-years'-digits method. At the beginning of 2018, management decided to change to straight-line.
-An accompanying disclosure note would include each of the following except:

Question

Doug Smith Industries purchased warehouses for $55 million (no residual value) at the beginning of 2015. The warehouses were being depreciated over a 10-year life using the sum-of-the-years'-digits method. At the beginning of 2018, management decided to change to straight-line. 
-An accompanying disclosure note would include each of the following except:

Quizplus · Accepted Answer

A change in depreciation methods is considered a change in estimate, and as such is accounted for prospectively. However, the disclosure note should disclose the justification that the change is preferable, the effect of a change on any financial statement line items affected for all periods reported, and the effect of the change on per share amounts affected for all periods reported.

Doug Smith Industries Purchased Warehouses for $55 Million (No Residual