In 2005, Carpet Company decides to change from the straight-line method of depreciation to the sum of the year’ s digits method. The following information is available :
| Pre-2005 | 2005 | |
| Straight Line Depreciation | $ 1600000 | $ 400000 |
| Sum of the Years Digits | $ 2300000 | $ 500000 |
A. $ 400000 depreciation expense in the 2005 income statement and $ 800000 separately as a change in accounting principle net of taxes.
B. $ 500000 depreciation expense in the 2005 income statement and $ 700000 separately as a change in accounting principle net of taxes.
C. $1200000 depreciation expense in the 2005 income statement and include a footnote of explanation including the tax effect.
参考答案：B
解析：
A change in depreciation method retroactively applied is a change in accounting method and must be separately disclosed on the income statement net of taxes. The amount of the disclosure is ( $ 2300000 - $1600000 = ) $ 700000 relating to the prior periods. The change from $ 400000 to $ 500000 in current depreciation is current and does not require separate disclosure.