anyone know why the depreciation divide by 9 yrs in 2015? I can’t find explanation for this. Thanks
Its here :
Operations and Summary of Significant Accounting Policies** Note 7. Property, Plant and Equipment** Up until December 31, 2016, the company depreciated its machinery and equipment on a straight line basis over a 10 year expected useful life. As of the start of 2017, the company’s estimate of the useful life of certain machinery and equipment will be reduced to 8 years.
thanks, I saw that however don’t understand why in 2015 divide by 9 yrs, shouldn’t it also by 10 yrs (expected useful life)?
What is getting divided by 9?
Estimated total useful life = Time lapsed since purchase (age) + Estimated remaining life
Its lease reclassification. You are not depreciating a new one.
thanks castintosea, however I still don’t get it, will be back to read the qns and digest it
the cash flow start at the beginning of the year until 2022. thats why there are 9 years
This sounds like a question pertaining to a section that is no longer in the level 2 curriculum…
Edit: Boy was I wrong! I just did the topic test and now see the problem you had.