A Two-Year-Old Asset Has a Useful Life of 10 Years

question 114

Multiple Choice

A two-year-old asset has a useful 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
• B) $90,000
• C) $200,000
• D) $360,000

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Definitions:

Alcohol Abuse

A pattern of drinking that results in harm to one's health, interpersonal relationships, or ability to work.

Social Inhibitions

The conscious or subconscious avoidance of a behavior or expression that is perceived to be socially unacceptable or inappropriate.

Active Ingredient

The component in a substance or product that is responsible for its therapeutic effects.

Marijuana

A psychoactive drug from the Cannabis plant used for medical or recreational purposes, known for its soothing effects.