A Building Currently Has a Net Book Value of $650,000

question 27

Multiple Choice

A building currently has a net book value of $650,000 after three years of straight-line depreciation totalling $150,000.The estimated residual value is $50,000.What was the building's original cost?

• A)$900,000
• B)$850,000
• C)$800,000
• D)$750,000

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Definitions:

Initial Cash Outlay

The immediate amount of cash required to initiate a project, investment, or purchase.

Conventional

Based on or in accordance with what is generally done or believed.

Independent

Characterizes an entity or person free from outside control or influence, often highlighting autonomy in decision-making.