Grant Company has decided to change the estimate of the useful life of an asset that has been in service for 2 years. Which of the following statements describes the proper way to revise a useful life estimate？（ ）
A: Revisions in useful life are permitted if approved by the IRS.
B: Retroactive changes must be made to correct previously recorded depreciation.
C: Only future years will be affected by the revision.
D: Both current and future years will be affected by the revision.
A: Revisions in useful life are permitted if approved by the IRS.
B: Retroactive changes must be made to correct previously recorded depreciation.
C: Only future years will be affected by the revision.
D: Both current and future years will be affected by the revision.
举一反三
- Total depreciation expense over an asset's useful life will not be identical under all methods of depreciation.
- Total depreciation expense over an asset's useful life will not be identical under all methods of depreciation. A: 正确 B: 错误
- A company purchases a machine with an expected useful life of 6 years for $9,000. After two years of use, management revised the expected useful life to 8 years. The machine is to be depreciated at 30% per annum on the reducing balance basis. A full year's depreciation is charged in the year of purchase, with none in the year of sale. During year 4, it is sold for $3,000. What is the profit or loss on disposal?? $1,000 profit|$840 profit|$87 loss|$1,410 profit
- On<br/>January 1, 2014, Portwell Company purchased a equipment for $210,000.<br/>They estimate a useful life of 4 years, residual value is $10,000. <br/>At the end of 2014, the balance in the equipment account will be:( <br/>) A: $200,000 B: $210,000 C: $150,000 D: $160,000
- My belief has always been "change is good, change is progress", but when it affected my life, I had to revise it to "accept change and make the most of it".