Use the Following Data ? Using the Sum-Of-The-Year's-Digits Method, the Amount of Depreciation for

question 8

Multiple Choice

Use the following data: $$\begin{array} { l r } \text { Asset cost } & \$ 80,000 \\\text { Expected life } & 3 \text { years } \\\text { Estimated salvage value } & \$ 10,000\end{array}$$ ? Using the sum-of-the-year's-digits method, the amount of depreciation for the first year would be

• A) $26,666.
• B) $35,000.
• C) $20,000.
• D) $40,000.

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Definitions:

Buyback Price

Buyback price is the price at which a company agrees to repurchase its own shares from shareholders, often as part of a share repurchase program.

Quality Ratings

Assessments of the creditworthiness or quality of corporations and government bonds, often provided by credit rating agencies.

Required Rates

The minimum returns demanded by investors or lenders to compensate for the risk of an investment or loan.

Bonds

Bonds are debt securities issued by corporations or governments to raise funds, where the bond issuer agrees to pay back the principal along with interest.