When a Firm Changes Only the Estimated Residual Value of Equipment

When a firm changes only the estimated residual value of equipment:

A) No adjustment is needed.
B) The remaining book value, reduced by the new residual value, is the basis for subsequent depreciation.
C) Depreciation must be recomputed for each previous year based on the new residual value.
D) The original cost, reduced by the new residual value, is the basis for subsequent depreciation.

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