An Asset That Cost $16,200 with a Residual Value of $1,200

question 25

Multiple Choice

An asset that cost $16,200 with a residual value of $1,200 and a useful life of 5 years was amortized for two years using the straight-line method.In the third year, the useful life was determined to be 2 years longer than initially expected.Amortization in the third year would be:

• A)$3,000
• B)$2,143
• C)$2,040
• D)$1,800

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Definitions:

Tide

The periodic rise and fall of sea levels caused by the gravitational interactions between the Earth, Moon, and Sun.

Rapid Erosion

The quick removal of soil and rock from the Earth's surface by natural processes like flowing water or wind.

Cliff

A steep face of rock and soil, often formed by erosional processes along coastlines, riverbanks, or in mountainous regions.

Delta

A nearly flat tract of land formed by deposition of sediment at the mouth of a river or stream.