Changes in estimates are handled prospectively by dividing the asset's book value less any residual value by the remaining estimated life.

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Changes in estimates, such as depreciation estimates, are handled prospectively. This involves adjusting future depreciation by dividing the asset's carrying amount (book value) less any salvage (residual) value by the new estimate of the asset's remaining useful life.

Changes in Estimates Are Handled Prospectively by Dividing the Asset's