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Blue Eggs and Bacon Company purchased a new piece of equipment on January 1, Year 1 for $2,000,000. Blue Eggs depreciates the equipment using the
Blue Eggs and Bacon Company purchased a new piece of equipment on January 1, Year 1 for $2,000,000. Blue Eggs depreciates the equipment using the straight-line method over 10 years, with no salvage value.
On January 1, Year 5, Blue Eggs decided that the equipment had eight more years of remaining life (instead of six). How should Blue Eggs report this change in estimate?
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