1. When reviewing the books, the accountant discovered that depreciation expense was recorded as $8,000 earlier in the year when it should be only $6,000. The bookkeeper had recorded depreciation for 8 months from the time the asset was purchased even though it was in delivery and not put into use until the beginning of July (6 months). What is the underlying cause of this change?

a.

An error

b.

A change in policy

c.

A change in estimation

2.

When reviewing the books, the accountant discovered that depreciation expense was recorded as $8,000 earlier in the year when it should be only $6,000. Originally the company had calculated the amount using the straight-line method but now, given how the company uses the asset sporadically, the units of production method is a much better fit. What is the underlying cause of this change?

a.

A change in policy

b.

A change in estimate

c.

An error