Changes in the estimates for residual value or useful life result in changes in the depreciation expense calculation.These changes are handled
A)retroactively.
B)as cumulative changes.
C)prospectively.
D)as prior period adjustments.

Question

Quizplus · Accepted Answer

Changes in estimates for residual value or useful life are handled prospectively, meaning that they are only applied to future periods and not retroactively adjusted. Cumulative changes or prior period adjustments are not used in this situation.

Changes in the Estimates for Residual Value or Useful Life