ACC 423 Education Begins/uophelp.com ACC 423 Education Begins/uophelp.com | Page 21

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 ================================================== elated Tutorials ACC 423 Week 1 Discussion Question 1 For more course tutorials visit www.uophelp.com 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