Which of the following is not a change in estimate?
A change in the useful life of a depreciable asset.
A change in the mortality rate used for pension computations.
A change from the cost to the equity method in accounting for investments.
A change in the warranty expense percentage.
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Which of the following is not a change in estimate? A change in the useful life of a depreciable asset. A change in...
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How is a change in an estimate of the salvage value and/ or useful life of an asset recorded?
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First, Drew company changed the total useful life from 10 years to 3 years on an asset purchased January 1, 2017, for $150,000. The asset was originally expected to be sold for $50,000 at the end of its useful life, but that amount also was changed in 2020 to $100,000. Drew company applies the straight-line method of depreciation to this asset. Second, Drew company changed from FIFO to LIFO but is unable to recreate LIFO inventory layers. The FIFO 2020...
Saved saves The following information is available on a depreciable asset owned by Mutual Savings Bank Purchase date Purchase price Salvage value Useful life Depreciation method July 1, Year 1 $82,600 $11,400 8 years straight-line The asset's book value is $64.800 on July 1, Year 3. On that date, management determines that the asset's salvage value should be $6,400 rather than the original estimate of $11,400. Based on this information, the amount of depreciation expense the company should recognize during...