If a business changes the estimated useful life,or estimated residual value,of a plant asset,depreciation expense must be recalculated.

Question

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If there is a change in the estimated useful life or estimated residual value of a plant asset, the depreciation expense must be adjusted or recalculated to reflect the updated information. This is necessary to ensure that the company's financial statements accurately reflect the true value and cost of its assets over time. Failure to make these adjustments can lead to inaccuracies in the company's financial reporting and may also impact its tax liabilities.

If a Business Changes the Estimated Useful Life,or Estimated Residual