Belton Corporation Uses Straight-Line Depreciation And, for Assets Acquired During

question 118

Multiple Choice

Belton Corporation uses straight-line depreciation and, for assets acquired during the fiscal year, follows the policy of recording a full month's depreciation for all assets acquired on or before the 15th of the month. No depreciation is recorded for the month if an asset is acquired after the 15th. On May 22, 20A, Belton purchased a car that cost $22,000 which had an estimated residual value of $2,000 and an estimated useful life of five years. To the nearest dollar, what is the amount of depreciation that should be recorded on the car for 20A?

• A) $2,333
• B) $2,000
• C) $2,667
• D) $4,000

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Definitions:

Marginal Benefits

The additional advantage or gain derived from receiving or consuming one additional unit of a product or service.

Marginal Costs

The added cost involved in producing another unit of a product or service.

Fiscal Impact

The effect of government spending and tax policies on the economy, including changes in revenue, expenditure, and debt levels.

Illegal Immigration

The act of moving to a country in violation of its immigration laws, often to seek work, shelter, or higher quality of life.