She deferred the current year depreciation of $49,000 to the following year in order to present in higher profit.
My answer is the violation in conservatism bcuz she should calculate the current profit for every year.
Your answer is partially correct. The act of deferring depreciation to the following year can indeed impact the presentation of higher profits in the current year. However, it is not a violation of conservatism per se. Conservatism principle in accounting suggests that you should be cautious in recognizing revenues and assets, while recognizing expenses and liabilities as soon as there is uncertainty.
In this case, the violation lies in the principle of matching expenses with revenues. Depreciation is an expense that should be recognized in the same period as the assets it corresponds to are being used. By deferring the depreciation expense, the company is not accurately matching its expenses with the revenues it generates in a given period. This violates the principle of reliability in financial reporting and can create a misleading picture of the company's profitability.
To determine the correct profit for each year, you would need to calculate the depreciation expense for that specific year based on the useful life of the assets. Depreciation is typically calculated using methods such as straight-line, declining balance, or units of production. By accurately recognizing the depreciation expense, the company can present a more accurate reflection of its profitability in each period.