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XM Radio was depreciating its satellites over 20 years (total cost of $20 million), for...

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Accounting

XM Radio was depreciating its satellites over 20 years (total cost of $20 million), for each of five satellites, useful life is only seven years due to the intensity of the sun rays. With reference to the scenario, answer the following questions:

What promulgated accounting standards should be followed? Provide your rationale.

How and when should this discovery be recorded in the financial statements of the company?

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