WZ Acquired Some Machinery on January 2,20x1

question 140

Multiple Choice

WZ acquired some machinery on January 2,20x1.WZ used straight-line depreciation with an estimated life of 15 years with no residual value.On January 1,20x6,WZ estimated that the remaining life of this machinery was 6 years with no residual value.How should this change be accounted for by WZ?

• A) Revising future depreciation per year, computed by dividing the book value on January 1, 20x6 by six.
• B) Revising future depreciation per year, computed by dividing the original cost by six.
• C) Estimating the effect of the change on each year's net earnings, but maintaining the method of depreciation as originally determined.
• D) None of these choices are correct.

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Public Goods

Items that are non-excludable and non-rivalrous, meaning they can be enjoyed by everyone, regardless of whether they contribute to their provision.

Protective Function

Activities carried out by the government to safeguard the economy and its agents, such as regulation and enforcement.

Government

The organization, or system, by which a community or nation is governed, typically involving institutions and practices of authority.

Person and Property

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