Which of the following situations should a company report a prior-period adjustment?

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Here is the solution for Which of the following situations should a company report a prior-period adjustment?. The solution is given after the options.

Which of the following situations should a company report a prior-period adjustment?

A change in the estimated useful lives of fixed assets purchased in prior years.

The correction of a mathematical error in the calculation of prior years’ depreciation.

A switch from the straight-line to double-declining balance method of depreciation.

The scrapping of an asset prior to the end of its expected useful life.

Correct Answer

The correction of a mathematical error in the calculation of prior years’ depreciation.

Explanation:

The correction of a mathematical error in the calculation of prior years’ depreciation. is the answer for Which of the following situations should a company report a prior-period adjustment?

Conclusion:

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