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:

Risk Factor

Any attribute, characteristic or exposure of an individual that increases the likelihood of developing a disease or injury.

Protective Factor

An aspect of an individual's environment or personality that reduces their vulnerability to negative psychological or physical outcomes.

Obsessive-Compulsive Disorder

A mental disorder characterized by unwanted repetitive thoughts (obsessions) and actions (compulsions).

Repetitive

Characterized by repeating the same action or event over and over again.