If a Vehicle Was Purchased for $6,500 and Has a Residual

question 23

Multiple Choice

If a vehicle was purchased for $6,500 and has a residual value of $500, the annual amortization expense will be $1,000 if the estimated useful life is:

• A)6 years
• B)6.5 years
• C)7 years
• D)13 years

---

Definitions:

Nasal Bone

One of the paired bones that lie in the upper part of the human nose, forming the bridge of the nose.

Perichondrium

Double-layered connective tissue sheath surrounding cartilage.

Connective Tissue

A type of body tissue that supports, binds together, and protects the organs and other tissues of the body.

Cartilage

A firm, elastic type of connective tissue found in many areas in the bodies of humans and other animals.