61.3k views
3 votes
Williamson Corporation changed estimates for an asset's life and salvage value. What's the 2013 depreciation expense after the change?

a. $40,000
b. $60,000
c. $110,000
d. $120,000

User Dgil
by
8.5k points

1 Answer

5 votes

Final answer:

Calculating the 2013 depreciation expense after a change in estimates for an asset's life and salvage value requires more information. Key details such as the asset's original cost, prior depreciation, and the new asset life and salvage value are necessary for a precise calculation.

Step-by-step explanation:

Without the necessary details such as original cost, prior accumulated depreciation, and the new asset life and salvage value estimates, it is impossible to accurately calculate the 2013 depreciation expense after the change for Williamson Corporation. When companies change estimates for an asset’s life or salvage value, they need to adjust future depreciation expenses accordingly. This requires recalculating depreciation expense for the remaining asset life based on the new estimates and taking into account any depreciation that has already been charged against the asset.

User Trick Jarrett
by
7.5k points