NEED HELP ASAP 17 Hunt Company has decided to change the estimate of the useful
ID: 2463589 • Letter: N
Question
NEED HELP ASAP 17
Hunt Company has decided to change the estimate of the useful life of an asset that has been in service for 2 years. Which of the following statements describes the proper way to revise a useful life estimate?
Both current and future years will be affected by the revision.
Retroactive changes must be made to correct previously recorded depreciation.
Only future years will be affected by the revision.
Revisions in useful life are permitted if approved by the IRS.
Both current and future years will be affected by the revision.
Retroactive changes must be made to correct previously recorded depreciation.
Only future years will be affected by the revision.
Revisions in useful life are permitted if approved by the IRS.
Explanation / Answer
When the estimate of the useful life of an asset is changed during an accounting period, both the current and the future years will be affected by the revision.
All other statements are incorrect regarding the change in estimate of useful life of an asset.
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