Goosen Company bought a copyright for $90,000 on January 1, 2015, at which time the copyright had an estimated useful life of 15 years. On January 5, 2018, the company determined that the copyright would expire at the end of 2021. How much should Goosen record retrospectively as the effect of change?
A) $0.
B) $12,000.
C) $8,000.
D) $14,400.

Question

Quizplus · Accepted Answer

This is a change in estimate, which is reported using the prospective approach.

Goosen Company Bought a Copyright for $90,000 on January 1