To revise depreciation expense, the accountant should compute depreciation expense using the asset's remaining book value and useful life and its new residual value.

Question

Quizplus · Accepted Answer

When revising depreciation expense due to changes in an asset's useful life, residual value, or both, the accountant should calculate future depreciation using the asset's remaining book value, its revised useful life, and its new residual value.

To Revise Depreciation Expense, the Accountant Should Compute Depreciation Expense