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[taillefer]

1. A change in an accounting estimate is:

a.Reflected in future financial statements and also requires modification of past statements
B.A change in a calculated amount that is part of financial statements that results from new information or subsequent developments and from better insight or improved judgment
c.Considered an error in the financial statements
d.Reflected in past financial statements
e.Not allowed under current accounting rules

3.A leasehold:
a.Is an investment asset
b.Is the same as a patent
c.Are the rights granted to the lessee by the lessor of a lease
d.Is recorded as rent expense
e.Is a short-term rental agreement

4.A depreciable asset currently has a $40,100 book value. The company owning the asset uses straight-line depreciation. They paid $70,000 for this asset and consider it to have a $1,000 salvage value with a twelve year useful life. How long has the company owned this asset?
a.Cannot be determined from the given information
b.12 years
c. 7 years
d.5.2 years
e.10.2 years