Question
On 1/1/2014, Al-Saada Company purchased cars for 15,000 dinars, and its useful life was estimated at six years at the time of purchase, and the
On 1/1/2014, Al-Saada Company purchased cars for 15,000 dinars, and its useful life was estimated at six years at the time of purchase, and the remaining value at the end of the useful life was estimated at 3,000 dinars, and the company decided to use the straight-line method of depreciation. On 1/1/2016, and due to the emergence of new information related to cars that were not previously available, it was estimated that the cars would be used for another 3 years, starting from 1/1/2016, and the value was re-estimated.
The remaining value becomes 2000 dinars. Required: A statement of the impact of the change in the estimates for the above cars on the financial statements for the year 2016 and the following years.
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