A change in the estimated useful life of equipment requires
A)a retroactive change in the amount of depreciation recognized in previous years.
B)that no change be made to depreciation calculations, so that depreciation expense amounts are comparable over the life of the asset.
C)that the amount of depreciation expense be changed in the current and future years.
D)that net income for the current year be increased.

Question

Quizplus · Accepted Answer

When the estimated useful life of equipment changes, the amount of depreciation expense is adjusted for the current and future years to reflect the new estimate. This does not affect the depreciation already recognized in previous years.

A Change in the Estimated Useful Life of Equipment Requires