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Question · Prospective recognition of a change in estimate

In 2025, Silvarne revises two estimates: the year's depreciation of an item of equipment, recomputed over its revised remaining life, is 30,000; a litigation provision increases by 12,000. Record the 2025 entries.

Revised 2025 depreciation
30,000
Increase in the provision
12,000
Your answer
  1. Line 1

    Account Depreciation expense

  2. Line 2

    Account Accumulated depreciation of property, plant and equipment

  1. Line 1

    Account Provision expense

  2. Line 2

    Account Provision

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