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

question 5

Multiple Choice

An asset being amortized with the straight-line method has a residual value of $10,000 and accumulated amortization expense of $30,000 in its second year.What was the original cost of the asset if its useful life was 5 years?

• A)$160,000
• B)$140,000
• C)$ 85,000
• D)$75,000

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Definitions:

Oligopoly

A market structure characterized by a small number of firms whose decisions about prices and output mutually influence one another.

Oligopolists

Oligopolists are firms within an oligopoly, a market structure characterized by a small number of firms dominating the market, often leading to limited competition.

Compete On Price

A business strategy focusing on offering goods or services at lower prices than competitors to attract customers.

Differentiated

Pertaining to products or services that are distinguished from similar products or services by unique characteristics, branding, quality, or performance.