An Asset Purchased for $12,000 with a $3,000 Salvage and a 5

Short Answer

An asset purchased for $12,000 with a $3,000 salvage and a 5 year life is depreciated using straight line depreciation for two years. At the beginning of the third year the useful life of the asset is revised to 4 years. Show how the revision of depreciation expense in the third year of the asset's life will affect the financial statements (compared to the financial statements if the revision in estimate had not been made).