An Asset Bought for $147 000 with a Zero Residual

question 18

Multiple Choice

An asset bought for $147 000 with a zero residual value was expected to last for seven years before it needed replacing. If at the end of the third year it was decided to extend its total useful life by four years (new remaining life is now eight years) , calculate the new depreciation charge using the straight-line approach.

• A) $10 225
• B) $10 500
• C) $13 364
• D) $21 000

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Definitions:

Self-concept

Self-concept is an individual's perception of themselves, encompassing beliefs, feelings, and thoughts about one's identity, abilities, and values.

Ideal Self

A person's conception of how they would like to be, often serving as a motivational guide for behavior and self-improvement.

Unconscious Mind

A section of the psyche responsible for holding emotions, ideas, impulses, and recollections that are not in the realm of our conscious perception.

Dreams

Dreams are the series of thoughts, images, and sensations occurring in a person's mind during sleep.