A change in the estimated salvage value of a plant asset requires a restatement of prior years' depreciation.

Name: A change in the estimated salvage value of a plant asset requires a restatement of prior years' depreciation.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

A change in the estimated salvage value of a plant asset does not require a restatement of prior years' depreciation. Instead, the depreciation expense is adjusted for future periods to account for the new salvage value.

A Change in the Estimated Salvage Value of a Plant