When estimated useful life of an asset is revised:
A) depreciation will continue at the current rate.
B) depreciation expense reported in previous years would be changed retroactively.
C) the depreciation expense in subsequent years will be changed but previous
D) calculations will not be changed.
E) generally accepted accounting principles have been violated.

Question

Quizplus · Accepted Answer

When the estimated useful life of an asset is revised, it affects the future depreciation expense but not the previous calculations. Therefore, the depreciation expense in subsequent years will be changed but previous calculations will not be changed.

When Estimated Useful Life of an Asset Is Revised