A Two Year-Old Asset Has a Depreciable Life of 10

question 23

Multiple Choice

A two year-old asset has a depreciable life of 10 years.Its initial purchase cost was $450,000 and it is depreciated by 10 percent annually.What is the remaining depreciable value of the asset?

• A)$ 0.00
• B)$90,000
• C)$200,000
• D)$360,000

---

Definitions:

Owner's Equity

The residual interest in the assets of an entity after deducting liabilities, representing the ownership stake of the proprietors.

Fees Earned

Fees earned constitute the income a company generates from providing services before any expenses are deducted.

Wages Expense

The total cost incurred by a company for the amount paid to its hourly employees during a reporting period.

Withdrawals

Money or assets taken out of a business by its owners for their personal use.