A Change in the Estimated Useful Life of a Building

question 64

Multiple Choice

A change in the estimated useful life of a building

• A) is not allowed by generally accepted accounting principles.
• B) affects the depreciation on the building beginning with the year of the change.
• C) must be handled as a retroactive adjustment to all accounts affected,back to the year of the acquisition of the building.
• D) creates a new account to be recognized on the income statement reflecting the difference in net income up to the beginning of the year of the change.

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