Multiple Choice
When a company makes a change in the estimated useful life or residual value of a depreciable asset, how should this change in estimate be accounted for?
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8. Long Lived Assets
Change in Estimate: Depreciation
Back8. Long Lived Assets
Change in Estimate: Depreciation
- Multiple ChoiceChanges in estimates related to depreciation are accounted for using which approach?85views
- Multiple ChoiceWhich of the following may lead to a revision of an estimate of a company's depreciation expense?55views
- Multiple ChoiceA change in accounting estimate, such as the estimated useful life of an asset for depreciation purposes, requires a company to account for the change:116views
- Multiple ChoiceA change in the estimated useful life of equipment requires:105views
- Multiple ChoiceWhen there is a change in the estimated service life of equipment, how should the change be accounted for?91views
- Multiple Choice
Roller Coaster Tycoons purchased a concession stand for \$360,000. Initially, the concession stand was depreciated straight-line over a ten year useful life with no residual value. After six years in use, RCT assessed that the concession stand would be useful for only two more years. What is depreciation expense in year 7?
236views1rank - Multiple Choice
Changing Minds Company purchased a building for \$480,000 and depreciated on a straight-line basis over 40 years, estimating a residual value of \$60,000. The company depreciated the building for twenty years and then estimated that the building would only remain useful for another twelve years. At this time, the company also re-evaluated the residual value at \$30,000. What will be depreciation expense in year 21?
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