Enos Company Has Decided to Change the Estimate of the Useful

question 210

Multiple Choice

Enos Company has decided to change the estimate of the useful life of an asset that has been in service for 2 years. Which of the following statements describes the proper way to revise a useful life estimate?

• A) Revisions in useful life are permitted if approved by the taxing authority.
• B) Retroactive changes must be made to correct previously recorded depreciation.
• C) Only future years will be affected by the revision.
• D) Both current and future years will be affected by the revision.

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Definitions:

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Congressional Review Act

A law that allows Congress to review and potentially overturn regulations created by government agencies.

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