Provide an example of how to REVISE straight line depreciationon an existing asset when...

80.2K

Verified Solution

Question

Accounting

Provide an example of how to REVISE straight line depreciationon an existing asset when there is a CHANGE in estimated usefullife or salvage value by addressing the following points:
1.  How many years of depreciation have already beenrecorded?
2.  What is the revision in useful life or salvagevalue?
3.  What was depreciation expense per year BEFORE ANDAFTER the revision?

Answer & Explanation Solved by verified expert

4.3 Ratings (910 Votes)

Here we can take an example of change in expected useful life X LTD has machine costing 50000 its expected useful life of 5 years and no residual value is expected at the end of the machines useful life After 3 years the remaining useful life of the machine was estimated to be only 1 years X LTD should See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

Transcribed Image Text

In: AccountingProvide an example of how to REVISE straight line depreciationon an existing asset when there...Provide an example of how to REVISE straight line depreciationon an existing asset when there is a CHANGE in estimated usefullife or salvage value by addressing the following points:1. How many years of depreciation have already beenrecorded? 2. What is the revision in useful life or salvagevalue?3. What was depreciation expense per year BEFORE ANDAFTER the revision?