Intermediate Accounting 14th Edition

Published by Wiley
ISBN 10: 0470587237
ISBN 13: 978-0-47058-723-2

Chapter 11 - Depreciation, Impairments, and Depletion - Questions - Page 634: 4

Answer

When the organization estimates that the asset will have an unrealistically long life, periodic depreciation charges, and thus, accumulated depreciation, will be lower and as a result, the carrying value of the asset will be higher.

Work Step by Step

The carrying value of a fixed asset is its cost less accumulated depreciation.
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