Question
The service life of a building that has been depreciated for 30 years of an originally estimated 50-year life (no residual value) has been revised
The service life of a building that has been depreciated for 30 years of an originally estimated 50-year life (no residual value) has been revised to an estimated remaining life of 10 years. Based on this information, the accountant should
Question 46Select one:
a.
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 had always been 40 years.
b.
continue to depreciate the building over the original 50-year life.
c.
depreciate the remaining book value over the remaining life of the asset.
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 had always been 40 years.
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