The Following Information Is Available on a Depreciable Asset Owned

question 35

Multiple Choice

The following information is available on a depreciable asset owned by Mutual Savings Bank: $\begin{array}{|l|r|}\hline \text { Purchase date } & \text { June 1, Year } \\\hline \text { Purchase price } & \$ 85,000 \\\hline \text { Salvage value } & \$ 10,000 \\\hline \text { Useful life } & 10 \text { years } \\\hline \text { Depredation method } & \text { straight-line } \\\hline\end{array}$ The asset's book value is $70,000 on June 1, Year 3. On that date, management determines that the asset's salvage value should be $5,000 rather than the original estimate of $10,000. Based on this information, the amount of depreciation expense the company should recognize during the last six months of Year 3 would be:

• A)$8,125.00
• B)$7,375.00
• C)$4,062.50
• D)$3,750.00
• E)$7,812.50

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Definitions:

Bullies

Individuals, typically in schools or workplace environments, who use their power or social standing to intimidate or harm others.

Multiple Selves

The concept that an individual possesses different facets of self-identity, which can vary according to situation and context.

Family

A social unit consisting of parents and their children, and sometimes including other relatives, bound by shared genetics, legal ties, or social commitments.

Peers

Individuals of the same age or status, often implying a group of people who share similar interests, experiences, or social status.