In 2013, due to a change in marketing forecasts, Barney Corporation reduced the projected life of its patent for producing round dice. The cumulative patent amortization prior to 2013 would have been $10 million higher had the new life been used. Barney's tax rate is 30%. Barney's retained earnings as of December 31, 2013, would be:
A)Overstated by $7 million.
B)Overstated by $3 million.
C)Overstated by $10 million.
D)UnaffecteD.This is a change in estimate.No prior period adjustment is needed.

Question

Quizplus · Accepted Answer

This is a change in estimate. No prior period adjustment is needed.

In 2013, Due to a Change in Marketing Forecasts, Barney