Practice
Check your answer
Write your response and explain your reasoning.
Use the Linden Peak paired timelines and packaging-press facts. Classify each scenario and compute the supported prospective schedule. Explain the current-period boundary. Then state how the answer changes if new evidence about the future consumption pattern supports a different depreciation method.
Compare your reasoning with the worked answer
Scenario A is prospective under the supplied new-information facts; Scenario B is an error-analysis stop. The supported annual allocation is ($18,000 - $3,000) / 3 = $5,000. A supported method change uses the inseparable estimate-principle route prospectively.