50) Equipment was purchased at the beginning of 2005 for $204,000.
At the time of its purchase, the equipment was estimated to have a use
ful life of six years and a salvage value of $24,000. The equipment wa
s depreciated using the straightline method of depreciation through 2008. At the beginning of 2008, t
he estimate of useful life was revised to a total life of eight years and t
he expected salvage value was changed to $15,000. The amount to be
recorded for depreciation for 2008, reflecting these changes in estimat
es, is
A. $22,800.
B. $12,375.
C. $19,800.
D. $23,625.
51) Which type of accounting change should always be accounted for
in current and future periods?
A. Change in accounting estimate
B. Change in accounting principle
C. Change in reporting entity
D. Correction of an error
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ACC 423 Week 1 Discussion Question 1
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Why do companies offer stock options? What is the experience of
either your organization or an organization that you are familiar with
when it comes to stock option compensation? Should stock option
compensation be included as an expense when calculating an
organization‟s net income? Explain why or why not. If so, how
should the amount of expense be calculated?
ACC 423 Week 1 Discussion Question 2