If a firm changes its estimate of the useful life of an asset, the firm must recalculate amortization expense for each previous year since the asset was placed in service.

Question

Quizplus · Accepted Answer

When a firm changes its estimate of the useful life of an asset, it does not recalculate amortization expense for previous years. Instead, it adjusts the amortization expense for the current and future years based on the new estimate.

If a Firm Changes Its Estimate of the Useful Life