A Change in the Estimated Useful Life and Residual Value

question 18

Multiple Choice

A change in the estimated useful life and residual value of machinery in the current year is handled as:

• A) A retrospective change back to the date of acquisition as though the current estimated life and residual value had been used all along.
• B) A prospective change from the current year through the remainder of its useful life, using the new estimates.
• C) A cumulative adjustment to income in the current year for the difference in depreciation under the new versus old estimates.
• D) All of these answer choices are incorrect.

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Definitions:

Acetylcholinesterase

An enzyme that catalyzes the breakdown of acetylcholine and some other choline esters that function as neurotransmitters.

Cholinergic Synapse

A synapse that uses acetylcholine as its neurotransmitter, facilitating communication between neurons in the nervous system.

Synaptic Cleft

The small gap between neurons at a synapse, across which neurotransmitters are released to transmit neuronal signals.

ACh

Acetylcholine (ACh) is a neurotransmitter involved in muscle activation, memory, and learning by transmitting signals between nerve cells.