The Estimated Life of a Building That Has Been Depreciated

question 33

Multiple Choice

The estimated life of a building that has been depreciated for 30 years of an originally estimated life of 50 years has been revised to a remaining life of 10 years. Based on this information, the accountant should

• A) continue to depreciate the building over the original 50-year life.
• B) depreciate the remaining book value over the remaining life of the asset.
• C) adjust accumulated depreciation to its appropriate balance, through net income, based on a 40-year life, and then depreciate the adjusted book value as though the estimated life had always been 40 years.
• D) adjust accumulated depreciation to its appropriate balance through retained earnings, based on a 40-year life, and then depreciate the adjusted book value as though the estimated life had always been 40 years.

---

Definitions:

Digital Signals

A representation of data in a sequence of discrete values, as opposed to continuous or analog signals.

4G

The fourth generation of broadband cellular network technology, succeeding 3G and offering increased internet speeds and higher data rates for mobile phones and devices.

Instant Messaging

A form of communication over the internet that allows two or more participants to send text messages in real-time.

Wi-Fi Direct

Wi-Fi Direct is a standard that allows Wi-Fi devices to connect to each other without requiring a wireless access point, enabling device-to-device connections.