Answered: If a business changes the estimated…

If a business changes the estimated useful life or estimated residual value of a plant asset, what must the business do in regard to depreciation expense?

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter15: Preparing Adjusting Entries And A Trial Balance

Section15.3: Adjusting Accumulated Depreciation

Problem 2AYU

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Question

If a business changes the estimated useful life or estimated residual value of a plant asset, what must the business do in regard to depreciation expense?

Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video

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