Equipment Was Purchased at the Beginning of 2012 for $680,000

question 58

Multiple Choice

Equipment was purchased at the beginning of 2012 for $680,000. At the time of its purchase, the equipment was estimated to have a useful life of six years and a salvage value of $80,000. The equipment was depreciated using the straight-line method of depreciation through 2014. At the beginning of 2015, the estimate of useful life was revised to a total life of eight years and the expected salvage value was changed to $50,000. The amount to be recorded for depreciation for 2015, reflecting these changes in estimates, is

• A) $41,250.
• B) $66,000.
• C) $76,000.
• D) $78,750.

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Definitions:

Broadcast Media

Platforms such as television and radio that disseminate information, news, and entertainment to a wide audience through electromagnetic waves.

Regulations

Rules and guidelines issued by governmental agencies for the purpose of controlling or governing certain practices or activities within society.

Ownership

The legal right to possess, use, and dispose of something, such as property or intellectual property.

Fairness Doctrine

A former policy of the United States Federal Communications Commission that required the holders of broadcast licenses to present controversial issues of public importance in a manner that was, in the FCC's view, honest, equitable, and balanced.