A machine originally had an estimated useful life of 5 years, but after 3 complete 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) 8 years.
E) 10 years.

Question

Quizplus · Accepted Answer

Since the original estimated useful life was 5 years and it has already been 3 complete years, there are 2 years left. However, the useful life was adjusted to 10 years in total, so there are now 7 years remaining to allocate the remaining cost to be depreciated. Therefore, the best choice is C.

A Machine Originally Had an Estimated Useful Life of 5