San Diego State University Operations And Supply Chain Management Assignment Help - Method

Question - Change in Estimate and Error; Financial Statements Presented below are the comparative income
statements for Pannebecker Inc. for the years 2009 and 2010. The following additional information is
provided:
1. In 2010, Pannebecker Inc. decided to switch its depreciation method from sum-of-the-years’-digits
to the straight-line method. The assets were purchased at the beginning of 2009 for $90,000 with an
estimated useful life of 4 years and no salvage value. (The 2010 income statement contains
depreciation expense of $27,000 on the assets purchased at the beginning of 2009.)
2. In 2010, the company discovered that the ending inventory for 2009 was overstated by $20,000;
ending inventory for 2010 is correctly stated.
Prepare t ...Read More he revised retained earnings statement for 2009 and 2010, assuming comparative
statements. (Ignore incometaxes.) ...Read Less

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