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1 April, 18:20

A change in the estimated useful life of equipment requiresa. a retroactive change in the amount of periodic depreciation recognized inprevious years. b. that no change be made in the periodic depreciation so that depreciationamounts are comparable over the life of the asset. c. that the amount of periodic depreciation be changed in the current year andin future years. d. that income for the current year be increased.

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  1. 1 April, 18:41
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    The correct answer is letter "C": that the amount of periodic depreciation be changed in the current year and in future years.

    Explanation:

    The current and future financial statements indicate a variation in the estimated useful life of an asset. The useful life of an asset and the amount of periodic depreciation are directly related. In that sense, there is no need to make retroactive adjustments in the depreciation.
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