The Peridot Company purchased machinery on January 2, 2016, for $800,000. A five-year life was estimated and

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The Peridot Company purchased machinery on January 2, 2016, for $800,000. A five-year life was estimated and no residual value was anticipated. Peridot decided to use the straight-line depreciation method and recorded $160,000 in depreciation in 2016 and 2017. Early in 2018, the company revised the total estimated life of the machinery to eight years.
Required:
1. What type of change is this?
2. Briefly describe the accounting treatment for this change.
3. Determine depreciation for 2018.
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Intermediate Accounting

ISBN: 9781259722660

9th Edition

Authors: J. David Spiceland, James Sepe, Mark Nelson, Wayne Thomas

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