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1 0 . 5 Effects of changes in estimates on depreciation expense At the end of each year, Patty Chu, the chief accountant at Rex
Effects of changes in estimates on depreciation expense
At the end of each year, Patty Chu, the chief accountant at Rex Lin Enterprises, a Singaporebased trading company, reviews longterm assets at the end of each year to determine whether changes are called for in how these assets are depreciated. In December her attention focused on two assets in particular:
tableDate acquired,Cost,tableAccumulated depreciationend of Useful life,Residual valueWarehouse$$ years,$
Caculate the recised annual depresion dxpenses dor eaxj asset in and compare them to what the expenses would be if the changes were not made.
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