A company revised the estimated useful lives of its fixed assets, which resulted in an increase in the remaining lives of several assets. Do GAAP permit the company to include, as income of the current period, the cumulative effect of the changes, which reduces the depreciation expense of past periods? Discuss. Immediately after a used truck is acquired, a new motor is installed and the tires are replaced at a total cost of $5, 750. Is this a capital expenditure or a revenue expenditure? For some of the fixed assets of a business, the balance in Accumulated Depreciation is exactly equal to the cost of the asset. (a) Is it permissible to record additional depreciation on the assets if they are still useful to the business? Explain. (b) When should an entry be made to remove the cost business? Explain. (b) When should an entry be made to remove the and the accumulated depreciation from the accounts