Orange Pekoe Co’s fixtures and fittings were purchased on 1…
Orange Pekoe Co’s fixtures and fittings were purchased on 1 July 2022 at a cost of $50,000. The directors have depreciated them on a straight-line basis over an estimated useful life of eight years assuming a $5,000 residual value. At 1 July 2024, the directors realize that the remaining useful life of the fixtures is five years. There is no change to the estimated residual value. Which of the following is TRUE in relation to the change in the remaining useful life of the fixtures and fittings?