Depreciation : Depreciation refers to the reduced value of a fixed asset due to its wear and tear use or obsolescence. It is a method of distributing the cost of the fixed assets over its estimated useful life. To explain: the treatment for depreciation expense in case of changes made to estimated useful life or estimated residual value of a plant asset.

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Chapter 9, Problem 11RQ

To determine

Depreciation: Depreciation refers to the reduced value of a fixed asset due to its wear and tear use or obsolescence. It is a method of distributing the cost of the fixed assets over its estimated useful life.

To explain: the treatment for depreciation expense in case of changes made to estimated useful life or estimated residual value of a plant asset.

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