In 2012, management of Simolin Company changed from straight-line to double-declining balance depreciation. The total difference in depreciation for all years through 2012 was $54,000 and for 2013 the difference was $6,200. The tax rate is 30%. Calculate the amount by which retained earnings at the start of 2013 should be adjusted.

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The Answer of In 2012, management of Simolin Company changed from straight-line to double-declining balance depreciation. The total difference in depreciation for all years through 2012 was $54,000 and for 2013 the difference was $6,200. The tax rate is 30%. Calculate the amount by which retained earnings at the start of 2013 should be adjusted.

In 2012, Management of Simolin Company Changed from Straight-Line to Double-Declining