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Change in Asset Useful Life Estimate
Adjusting the monthly depreciation because a machine is now expected to last longer than originally planned.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Depreciation Expense (New Rate) | Expense (+) | 400.00 | - |
| Accumulated Depreciation | Contra-Asset (+) | - | 400.00 |
💡 Accountant's Note
A change in estimate is 'Prospective.' You don't fix the past; you just calculate the remaining book value and spread it over the new remaining years.
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