When there is a Change in Estimated Depreciation
Correct Answer = Current and Future Year Depreciation is Revised
This situation occurs commonly in the real world and it is not practical to revise estimates from past accounting periods. That being said, the best approach is to make revisions in the current accounting period, as well as future periods based on the new salvage value and/or annual depreciation rate. Adjusting depreciation is not an ideal situation, but this is the most appropriate way to address it.