For a Company Using the Straight-Line Method of Depreciation That

question 27

Multiple Choice

For a company using the straight-line method of depreciation that changes the estimated useful life from 20 years to 15 years remaining as at the beginning of the year, the accountant should do the following:

• A)Compute current year depreciation as (carrying amount - residual value)divided by 15 years.
• B)Adjust prior year's depreciation.
• C)Adjust the amount of accumulated depreciation as at the beginning of the year.
• D)Compute current year depreciation as (carrying amount)X 15/20.

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Definitions:

Constraints

Limitations or restrictions that affect the course of an action or decision-making process.

Creative Problem Solver

An individual capable of thinking outside the box to find innovative solutions to complex challenges.

Intellectual Flexibility

The ability to adapt one's thinking and problem-solving strategies across various situations and contexts.

Traditional Mental Set

A fixed way of thinking about objects and activities.