A machine had an estimated useful life of 5 years,but after 3 years,it was decided that the original estimate of useful life should have been 10 years.At that point,the remaining cost to be depreciated should be allocated over the remaining:
A)2 years.
B)5 years.
C)7 years.
D)10 years.

Question

Quizplus · Accepted Answer

The change is recorded prospectively which means that the remaining cost to be depreciated will be allocated over the remaining 7 years (10 - 3)of the asset's useful life.

A Machine Had an Estimated Useful Life of 5 Years,but