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

A change in the estimated useful life of equipment is considered a change in accounting estimate, which affects the current and future periods' depreciation calculations, not past periods.

A Change in the Estimated Useful Life of Equipment Requires