When a Firm Changes Only the Estimated Residual Value of Equipment

question 62

Multiple Choice

When a firm changes only the estimated residual value of equipment:

• A)No adjustment is needed.
• B)The remaining book value, reduced by the new residual value, is the basis for subsequent depreciation.
• C)Depreciation must be recomputed for each previous year based on the new residual value.
• D)The original cost, reduced by the new residual value, is the basis for subsequent depreciation.

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Definitions:

Big Five

Refers to the five broad personality traits: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Personality Traits

Enduring characteristics and behaviors that define an individual's typical patterns of feeling, thinking, and acting.

Heredity

The genetic transmission of characteristics from parents to offspring, influencing traits such as appearance, health, and behavior.

Generativity

A focus on shaping and leading the upcoming generation, typically demonstrated through roles like parenting, instructing, or mentoring.