Company A uses straight line depreciation to depreciate its capital assets. In Year 5 Company A purchased equipment and estimated that it would have a useful life of 8.5 years. After only 3 years of using the equipment, in Year 8, management decided that the equipment would be useful for only 3 more years. What is the proper terminology for management's decision in Year 8? Multiple Choice

Company A uses straight line depreciation to depreciate its capital assets. In Year 5 Company A purchased equipment and estimated that it would have a useful life of 8.5 years. After only 3 years of using the equipment, in Year 8, management decided that the equipment would be useful for only 3 more years. What is the proper terminology for management's decision in Year 8? Multiple Choice

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter8: Depreciation And Sale Of Business Property

Section: Chapter Questions

Problem 6MCQ: Which of the following is not true about the MACRS depreciation system: A salvage value must be...

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