Response to the following questions:
1. Name the three factors that need to be considered in determining the amount of periodic depreciation
A company revised the estimated useful lives of its fixed assets, which resulted in an increase in the remaining lives of several assets. Does GAAP permit the company to include, as income of the current period, the cumulative effect of the changes, which reduces the depreciation expense of past periods? Discuss.
2. In what sections of the income statement are gains and losses from the disposal of fixed assets presented?