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Squid Roe, Incorporated's $ 4 8 , 0 0 0 sushi bar was originally expected to be used for eight years with no residual value.
Squid Roe, Incorporated's $ sushi bar was originally expected to be used for eight years with no residual value. Depreciation on the bar was $ per year for the past two years. In the third year, management changed the estimated life of the bar to be a total of only six years instead of eight What should Squid Roe do:Multiple ChoiceGo back and revise all previous years' depreciation expense to be $ per year.Revise the depreciation expense to be $ for years three through six.Continue to depreciate the bar at $ per year and then show a loss when it removes the bar at the end of year six.Disclose the new information in the notes to the financial statements, but do not change anything else.
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