What would be the dollar amount of change in net income

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Supernova purchased equipment to cut and embroider jeans at the beginning of the year. The total cost of the equipment is $250,000. The equipment is expected to have a useful life of 10 years and no residual value. Molly, the accountant of Supernova, is wondering what would be the impact of depreciating the equipment using the straight line method instead of the double declining method, the method used by the company for its other machines. The company is depreciating new purchases for a full year in the year of the purchase.

Question 1: At the end of the first year, what would be the dollar amount of a change in net income if the straight-line method was hypothetically used instead of the double declining method during the first year of depreciation? Please state the absolute amount of a change in net income only

Reference no: EM132523934

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