Which of the following is not a reason to revise the amount of depreciation expense?
A)change in estimated useful life
B)permanent decline of an asset's fair market value below book value
C)change in estimated residual value
D)incurrence of a capital expenditure associated with a plant asset

Question

Quizplus · Accepted Answer

A permanent decline in an asset's fair market value below its book value is not a reason to revise depreciation expense. Depreciation is based on the cost, useful life, and residual value of an asset, not its current market value.

Which of the Following Is Not a Reason to Revise