A Change in the Estimated Useful Life of Equipment Requires

question 152

Multiple Choice

A change in the estimated useful life of equipment requires

• A) a retroactive change in the amount of periodic depreciation recognized in previous years.
• B) that no change be made in the periodic depreciation so that depreciation amounts are comparable over the life of the asset.
• C) that the amount of periodic depreciation be changed in the current year and in future years.
• D) that profit for the current year be increased.