Landers' Ltd. purchased a building 15 years ago, at which time the building was estimated to have an estimated useful life of 50 years and a $50,000 residual value. At the beginning of the current fiscal year Landers' has determined that the building has a remaining useful life of only 10 years and no residual value. Based on this information and ignoring income taxes, Landers' should ___________.? Select answer from the options below Restate the accumulated depreciation and retained earnings based on a total useful life of 40 years and zero residual value, and depreciate the remaining book value as if the useful life were always 40 years and the residual value was always zero. Reverse all previously recorded depreciation through depreciation expense, and re-calculate the total depreciation expense based on a 40 year useful life and zero residual value. No adjustment through retained earning is then required. Make no changes to the depreciation expense as the original estimate was based on sound engineering and market values. Depreciate the remaining book value of the building over the remaining 10 years of life, and no residual value.

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The detailed answer for the above question is provided below The correct answer is Depreciate the re... View the full answer