Mandeep Ltd

question 96

Multiple Choice

Mandeep Ltd.has decided to change the estimate of the useful life of an asset that has been in service for two 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 Canada Revenue Agency.
• B)Both the current and future years will be affected by the revision.
• C)Retroactive changes must be made to correct previously recorded depreciation.
• D)Only future years will be affected by the revision.

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Definitions:

Promissory Estoppel

A legal principle preventing a party from withdrawing a promise made to another party if the latter has relied on that promise to their detriment.

Promisee

The person to whom a promise is made in a contractual agreement, and who stands to benefit from its fulfillment.

Promise

A promise or guarantee that an individual will take a specific action or ensure a certain event occurs.

Legally Sufficient

Describes evidence or information that meets the established legal standards to support a claim or decision in court.