XYZ decided to change its depreciation policy by (1)discontinuing to record depreciation on land, and (2)changing the estimated useful life on all autos used in the business from five years to four years.Choose the correct statement concerning these two changes:

Question

Quizplus · Accepted Answer

Discontinuing depreciation on land is an error correction because land does not depreciate. Changing the estimated useful life of autos from five years to four years is a change in estimate, reflecting new information or a reassessment of the future use of the assets.

XYZ Decided to Change Its Depreciation Policy by (1)discontinuing to Record