Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A machine was depreciated for 30 of 50 years when it was discovered that the estimated life of 50 years was usederroneously. That 50-year life

A machine was depreciated for 30 of 50 years when it was discovered that the estimated life of 50 years was usederroneously. That 50-year life was for buildings; the estimated life of all machines was 40 years. The item qualifies as a prior period adjustment. Indicate the appropriate accounting:

Select one:

a.Continue to depreciate the machine over the original 50-year life

b.Depreciate the remaining book value over the remaining life of the asset

c.Adjust accumulated depreciation to its appropriate balance, through net income, based on a 40-year life, and then depreciate the adjusted book value as though the estimated life has always been 40 years

d.Adjust accumulated depreciation to its appropriate balance through retained earnings, based on a 40-year life, and then depreciate the adjusted book value as though the estimated life has always been 40 years

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Ronald W Hilton

8th Edition

0073526924, 9780073526928

More Books

Students also viewed these Accounting questions

Question

Purpose: What do we seek to achieve with our behaviour?

Answered: 1 week ago

Question

An action plan is prepared.

Answered: 1 week ago