The Following Items (In Thousands) Are Taken from the Financial

question 40

Multiple Choice

The following items (in thousands) are taken from the financial statements of Huang Company for the year ending December 31, 2014: What is the book value of the equipment at December 31, 2014?

• A) ¥714,000
• B) ¥630,000
• C) ¥546,000
• D) ¥510,000

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Definitions:

Infinite Series

A series that continues indefinitely, represented by an infinite sum of terms.

Depreciates

The process of an asset losing value over time due to use, wear and tear, or obsolescence.

Depreciated Value

The reduced worth of an asset over time due to wear and tear or obsolescence.

Increasing Annuity

A type of annuity payment that grows at a certain rate or percentage over time.