The estimated life of a building that has been depreciated for 30 years of an originally estimated life of 50 years has been revised to a remaining life of 10 years. Based on this information, the accountant should Question 57 options: 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 depreciate the remaining book value over the remaining life of the asset.
The estimated life of a building that has been depreciated for 30 years of an originally estimated life of 50 years has been revised to a remaining life of 10 years. Based on this information, the accountant should Question 57 options: 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 depreciate the remaining book value over the remaining life of the asset.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
#57
The estimated life of a building that has been depreciated for 30 years of an originally estimated life of 50 years has been revised to a remaining life of 10 years. Based on this information, the accountant should
Question 57 options:
a
|
adjust
|
b
|
depreciate the remaining book value over the remaining life of the asset.
|
c
|
continue to depreciate the building over the original 50-year life.
|
d
|
adjust accumulated depreciation to its appropriate balance through
|
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