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?

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

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

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What is the accumulated depreciation after year 3?

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

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

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

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