Focus,Inc.determined that it had incorrectly estimated both the estimated life and the estimated residual value of equipment that it purchased two years ago.When Focus accounts for the change in accounting estimates,it must depreciate the remaining book value of the asset over the current and future accounting periods.

Question

Quizplus · Accepted Answer

When there is a change in the accounting estimate, it is necessary to adjust the book value of the asset and depreciate it over the remaining useful life. Therefore, the statement is true.

Focus,IncDetermined That It Had Incorrectly Estimated Both the Estimated Life