Kindred Healthcare, Inc. operates a home health, hospice and community care business, rehabilitation services, nursing centers, and

Question:

Kindred Healthcare, Inc. operates a home health, hospice and community care business, rehabilitation services, nursing centers, and assisted living facilities across the United States. Its recent annual report contained the following note:


Property and equipment
Beginning January 1, 2015, the Company changed the estimated useful life of certain technology and medical equipment based upon a detailed review of actual utilization. The change in estimate extended the expected useful life by two to three years depending on the equipment category and has been accounted for prospectively. The impact from this change in accounting estimate was an increase to income (loss) from continuing operations before income taxes of approximately $14 million ($8 million net of income taxes) for the year ended December 31, 2015.


Required:

Why do you think Kindred Healthcare, Inc., changed its depreciation method for property, plant, and equipment?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  answer-question

Financial Accounting

ISBN: 978-1259964947

10th edition

Authors: Robert Libby, Patricia Libby, Frank Hodge

Question Posted: