Practice prompt · Q:long-lived-asset-estimates-and-exits/estimate-revision-001

Compute a prospective depreciation revision

Summative numerical item on carrying amount, remaining depreciable amount, revised periodic allocation, and non restatement.

Updated Aug 6, 2026 Review due Nov 6, 2026

Practice

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At the start of Year 4, equipment has $36,000 cost and $18,000 accumulated depreciation. New information after Year 3 supports a $3,000 residual value and three remaining full years. The earlier estimate properly used information then available. Which treatment and amounts are correct?