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On 1 July 2015 the directors made a decision, using information obtained over the last couple ofyears, to revise the useful life of an item of manufacturing equipment. The equipment was acquired on1 July 2013 for $500,000, and has been depreciated on a straight-line basis, based on an estimateduseful life of 10 years and a residual value of nil. Rainyday Ltd uses the cost model for manufacturingequipment. The directors estimate that as at 1 July 2015, the equipment has a remaining useful life of 6years and a residual value of nil. No depreciation has been recorded as yet for the year ended 30 June2016 as the directors were unsure how to account for the change in the 2016 financial statements, andare unsure whether the 2014 and 2015 financial statements will need to be revised as a result of thechange.