Ch8. Video 14 - Changes in Estimates example

The video tutorial explains how to handle changes in depreciation calculations for a copy machine at a pop-up company. Initially, the useful life of the machine is extended, requiring recalculations. Later, both the useful life and salvage value change, prompting further adjustments. The tutorial guides through these recalculations step-by-step, ensuring the depreciation expense aligns with the new parameters.

What is the initial cost of the copy machine mentioned in the example?

How does the useful life of the copy machine change in year 4?

Explain the recalculation process for depreciation when the useful life is extended.

What is the accumulated depreciation after year 3?

What is the new depreciation expense per year after the recalculation?

How does a change in salvage value affect the depreciable base?

What is the final accumulated depreciation after year 9 in the second example?