Answer:
The question is centred on change in accounting estimates,since such change is not due to errors,the change in salvage value of the spectrophotometer,should be reflected in the accounts prospectively and not retrospectively.
That means,the increase in depreciation of the medical equipment due to reduction in salvage, value should be shown in the accounts from 2017 onward.
Explanation:
Accounting estimate is about approximating the amount of debit or credit that should be posted in the books of accounts for items, where no precise amount can be ascertained.
Accounting estimate is applicable to the following:
Useful live of an asset
Asset salvage value
Provision for bad and doubtful debts.
