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one of the three is wrong Continuing from Question 2... Scenario B: Desert, Co. purchased a truck for 550.000 on January 1, 2016. The truck
one of the three is wrong
Continuing from Question 2... Scenario B: Desert, Co. purchased a truck for 550.000 on January 1, 2016. The truck had an estimated salvage value of $5.000 and an estimated useful life of 10 years, Desert uses the straight-line depreciation method On January 1, 2019. Desert revised the estimated salvage value to S10,000, but did not change the useful life. The accountant recorded depreciation expense using the old salvage value when calculating the $500.000 ICO. 1. Is an adjustment needed to Desert's Income for Continuing Operations for 2019? Yes 1A. If yes, what type of adjustment? Prospective 1B. If yes, what is that amount of the adjustment needed? Decrease ICO 52650 Answer 1: Yes Answer 2: Prospective Answer 3: Decrease ICO 82650 Step by Step Solution
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