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problem 1: On January 1, 2017, Casino Inc. purchased a machine for $300,000. The machine has an estimated five year life, and no residual value. Double declining balance depreciation has been used for financial statement reporting and CCA for income tax reporting. Effective January 1, 2020, Casino decided to change to straight-line depreciation for this machine, and treated the change as a change in accounting policy. For calendar 2020, Casino's pre-tax income before depreciation on this asset is $250,000. Their income tax rate has been 30% for many years. What net income should Casino report for calendar 2020?
Option 1: $171,640Option 2: $190,000Option 3: $133,000Option 4: $91,000
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The manufacturing overhead budget at Calander Corporation is based on budgeted direct labor-hours. The direct labor budget indicates that 5,500 direct labor-hours will be required in February. The variable overhead rate is $4.30 per direct labor-hour..
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