A Firm Purchases an Asset for $50,000 and Estimates That

question 92

Multiple Choice

A firm purchases an asset for $50,000 and estimates that it will have a useful life of five years and a salvage value of $5,000.Under the straight-line method,the balance in the accumulated depreciation account,after the second year,will be

• A) $9,000.
• B) $18,000.
• C) $10,000.
• D) $20,000.

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Definitions:

Estimated Lifetimes

Predictions or calculations regarding the duration or length of time something is expected to last.

Histogram

A graphical representation of the distribution of numerical data, typically shown as bars indicating the frequency of different intervals of values.

Skewed Right

A distribution shape where the tail is longer on the right side, indicating that the majority of the data points are located to the left.

Olympic Games

A major international multi-sport event featuring summer and winter sports competitions in which thousands of athletes participate in a variety of competitions.