An Asset Being Amortized with the Straight-Line Method Has a Residual

question 8

Multiple Choice

An asset being amortized with the straight-line method has a residual value of $20,000 and amortization expense of $25,000 in its second year. What was the original cost of the asset if its useful life was 10 years?

• A) $270,000
• B) $200,000
• C) $185,000
• D) $250,000

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Definitions:

Pathogens

Microorganisms or agents that can cause disease in their host, including viruses, bacteria, fungi, and protozoans.

Respiratory Diseases

Illnesses that affect the lungs and other parts of the respiratory system, potentially impairing breathing and gas exchange.

ICTV

The International Committee on Taxonomy of Viruses, an organization responsible for the classification and nomenclature of viruses.

Linnaean Binomial Nomenclature

The formal system of naming species of living things by giving each a name composed of two parts, both of which use Latin grammatical forms.