Lenexa State Bank has adopted the practice of capitalizing and amortizing some marketing expenditures throughout the estimated life of the costs. The bank judged that the future advantages from these expenses were questionable in the present year. As a result, the bank decided to expense these expenditures as they were incurred. In the comparative financial accounts, how should the bank record this accounting change?
Lenexa State Bank has adopted the practice of capitalizing and amortizing some marketing expenditures throughout the estimated life of the costs. The bank judged that the future advantages from these expenses were questionable in the present year. As a result, the bank decided to expense these expenditures as they were incurred. In the comparative financial accounts, how should the bank record this accounting change?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Lenexa State Bank has adopted the practice of capitalizing and amortizing some marketing expenditures throughout the estimated life of the costs. The bank judged that the future advantages from these expenses were questionable in the present year. As a result, the bank decided to expense these expenditures as they were incurred. In the comparative financial accounts, how should the bank record this accounting change?
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