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Hi Gurus
I want to use the AL in SIM for some quick reference.Let me give 1 hypothetical problem .I come across a problem ( SIM ) where it is asking for calculating the depreciation due to change in estimates.
problem:Initial value is 10000, salvage value is $500 and useful life of 10 years.
In year 2 it came to knowledge of accountant that salvage value would be $250 (not $500).
Requirement : Calculate the depreciation for year 2.
Scenario : assuming I forgot what to do with new salvage value ?Assume I am not sure ,should I adjust the difference in salvage value or deduct from new carrying value and divide by remaining period.
I want to refer the AL for salvage value treatment in AL.
This is scenario I have made up .Kindly suggest me if it possible to get little help from AL in exam and solve the SIM problem .
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