The Typhoon Company uses straight-line depreciation. It lowers an estimated salvage value, resulting in a depreciation...

90.2K

Verified Solution

Question

Accounting

The Typhoon Company uses straight-line depreciation. It lowersan estimated salvage value, resulting in a depreciation expensehigher than previous year amounts. In addition to the recording ofdepreciation for the current year
a) A restatement of financial statements and a credit toAccumulated Depreciation
b) A restatement of financial statements and a debit toAccumulated Depreciation
c) No restatement of financial statements and a credit toAccumulated Depreciation
d) No restatement of financial statements and a debit toAccumulated Depreciation
e) No restatement of financial statements and a no entry toAccumulated Depreciation
is it the changing in accounting estimate? or change due to anaccounting error?
to the changing accounting estimate, do we need to A restatementof financial statements and journal entry
to change due to an accounting error, do we need to Arestatement of financial statements and journal entry
how to represent the current and the previous year?

Answer & Explanation Solved by verified expert

3.8 Ratings (635 Votes)

Answer is e No restatement of financial statements and a no entry to Accumulated Depreciation Explanation Under Straightline method If the company lowers the estimated scrap value then the depreciation expense will be higher than the previous year amounts For example Cost of the asset is 10000 useful 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