Question

Which of the following is true when the estimate of an asset's useful life is changed?

A) The new estimate is ignored until the last year of the asset's life.
B) The depreciation expense in the prior year is restated.
C) Prior years' financial statements must be restated.
D) The asset's remaining depreciable book value will be spread over the asset's remaining life.

Answer 1

D) The asset's remaining depreciable book value will be spread over the asset's remaining life.