To determine a new depreciation amount after a change in estimate of a plant asset's useful life, the asset's remaining depreciable cost is divided by its remaining useful life.

Question

Quizplus · Accepted Answer

This is correct. When there is a change in estimate of a plant asset's useful life, the remaining depreciable cost of the asset is divided by its new remaining useful life to determine the new depreciation amount.

To Determine a New Depreciation Amount After a Change in Estimate