Equipment with a Cost of $160,000,an Estimated Residual Value of $40,000,and

question 146

Multiple Choice

Equipment with a cost of $160,000,an estimated residual value of $40,000,and an estimated life of 15 years was depreciated by the straight-line method for 4 years.Due to obsolescence,it was determined that the useful life should be shortened by 3 years and the residual value changed to zero.The depreciation expense for the current and future years is

• A)$16,000
• B)$11,636
• C)$11,000
• D)$8,000

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Definitions:

Legal Position

Refers to a party's rights, responsibilities, and standpoints under the law in a particular situation.

Injunction

A judicial command mandating that a person or organization start or stop a particular activity.

Mitigate Damages

Refers to the legal principle requiring a party to reduce their losses following a breach of contract.

Equitable Remedy

Judicial relief granted based on principles of fairness, including actions like injunctions and specific performance, as opposed to monetary damages.