A change in the estimated useful life of equipment requires

A) a retroactive change in the amount of periodic depreciation recognized in previous years.
B) that no change be made in the periodic depreciation so that depreciation amounts are comparable over the life of the asset.
C) that the amount of periodic depreciation be changed in the current year and in future years.
D) that income for the current year be increased.

Estimated Useful Life

Estimated useful life is the period over which an asset is expected to be usable for its intended purpose, used to calculate depreciation.

Periodic Depreciation

The method of allocating the cost of a tangible asset over its useful life on a periodic basis, usually annually.

Retroactive Change

A change applied to past periods or transactions in financial records or systems, typically to correct errors or implement new information.