Once the Estimated Depreciation for an Asset Is Calculated

question 86

Multiple Choice

Once the estimated depreciation for an asset is calculated:

• A) The estimate itself cannot be changed, however, new information should be disclosed in financial statement footnotes.
• B) It may be revised based on new information and any changes are accumulated and recognized when the asset is sold.
• C) It may be revised based on new information.
• D) It cannot be changed due to the historical cost principle.
• E) Any changes are accumulated and recognized when the asset is sold.

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