Warren Company Plans to Depreciate a New Building Using the Double

question 111

Multiple Choice

Warren Company plans to depreciate a new building using the double declining-balance depreciation method.The building cost is $800,000.The estimated residual value of the building is $50,000 and it has an expected useful life of 25 years. Assuming the first year's depreciation expense was recorded properly,what would be the amount of depreciation expense for the second year?

• A)$30,720.
• B)$32,000.
• C)$58,880.
• D)$64,000.

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Definitions:

Premature Closure

The process of making a decision or arriving at a conclusion before all the necessary and relevant information has been considered.

Unscientific Thinking

Reasoning or beliefs not based on or contradicting established scientific methods and principles.

Subjective Observation

The collection of data based on personal judgments, feelings, or opinions, rather than objective measurement.

Objectivity

Is assessed by the degree of consistency between the observations of independent observers.