A change from the straight-line method to the sum-of-years'-digits method of depreciation is handled as:
A) A retrospective change back to the date of acquisition as though the current estimated life had been used all along.
B) A cumulative adjustment to income in the current year for the difference in depreciation under the new versus old useful life estimate.
C) A prospective change from the current year through the remainder of its useful life.
D) None of these answer choices are correct.

Question

Quizplus · Accepted Answer

The change from the straight-line method to the sum-of-years'-digits method of depreciation is considered a change in accounting estimate and is handled prospectively from the current year through the remainder of the asset's useful life. Therefore, option C is the correct answer.

A Change from the Straight-Line Method to the Sum-Of-Years'-Digits Method