7. If a change in an accounting estimate (life of an asset) occurs the impact on the financial statements is A) Reflected in past financial statements B) Reflected in future financial statements and also requires modification of past statements C) Reflected in current and future years' financial statements, not in prior statements D) Not allowed under current accounting rules E) Considered an error in the financial statements 8. A company purchased a computer server on January 1 for $6,000. This register has a useful life of 5 years and a salvage value of $500. What would be the depreciation expense for the second-year of its useful life using the double-declining-balance method? A) S 500 B) $2,400 C) $1.520 D) $1,440 E) $2,200