Dallas Company purchased a delivery van in 2010 At the time of purchase, the van 's service life was estimated to be seven years with a salvage value of $500 The company has been using the straight line method of depreciation During 2013, the company determined that because of extensive use, the va...

According to FASB ASC Topic 250 or FASB Statement No 1 ...

Dallas Company purchased a delivery van in 2010. At the time of purchase, the van's service life

Question:

Dallas Company purchased a delivery van in 2010. At the time of purchase, the van's service life was estimated to be seven years with a of $500. The company has been using the straight-line method of depreciation. During 2013, the company determined that because of extensive use, the van's service life would be only five years with no . Also, the company has decided to change the depreciation method used from straight-line to the sum-of-the-years'- digits method. How would these changes be treated?
Salvage Value
Salvage value is the estimated book value of an asset after depreciation is complete, based on what a company expects to receive in exchange for the asset at the end of its useful life. As such, an asset’s estimated salvage value is an important...