Salvage value was ignored when originally calculating the units-of-production depreciation.This error would cause:

Question

Quizplus · Accepted Answer

Ignoring salvage value when calculating units-of-production depreciation would result in a higher depreciation expense for the period. As a result, the period's net income would be understated since expenses are higher than they should be. Additionally, the period end assets would be understated since there is an overstatement of the depreciation expense.

Salvage Value Was Ignored When Originally Calculating the Units-Of-Production Depreciation