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Briefly describe the accounting treatment for this change

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Reference no: EM131783629

Question - Accounting Change

Canliss Milling Company purchased machinery on January 2, 2009, for $800,000. A five-year life was estimated and no residual value was anticipated. Canliss decided to use the straight-line depreciation method and recorded $160,000 in depreciation in 2009 and 2010. Early in 2011, the company revised the total estimated life of the machinery to eight years.

Required:

1. What type of accounting change is this?

2. Briefly describe the accounting treatment for this change.

3. Determine depreciation for 2011.

Reference no: EM131783629

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