Sacramento Company Owns a Fixed Asset with an Original Cost

question 47

Multiple Choice

Sacramento Company owns a fixed asset with an original cost of $100,000.Magic Company estimates it will use the asset for 4 years, at which time the asset can be sold for $10,000.The book value of the asset after three years of use is_____.

• A)$32,500
• B)$50,000
• C)$45,000
• D)$100,000

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Definitions:

Irony

The use of words to convey a meaning that is the opposite of its literal meaning, often for humorous or emphatic effect.

Wit

A form of intelligent humor, the ability to say or write things that are clever and usually funny.

Child-directed Speech

The adjusted way of speaking that adults use when talking to young children, often involving simplified vocabulary, higher pitch, and exaggerated intonation.

Higher Pitch

A tone that is perceived as having a higher frequency compared to another tone, often associated with sounds of a higher frequency.