Consider an Asset That Was Separated into Its Main Components

question 53

Multiple Choice

Consider an asset that was separated into its main components (A, B and C) .The $1,200,000 purchase price was allocated to these components in equal proportions.The useful lifes are 12, 4, and 7 years for components A, B and C respectively.Neither of the
Components (except for component C for which a $18,000 value is anticipated) is
Expected to have a residual value.Assuming straight-line depreciation, total annual depreciation expense relating to these assets is

• A)$125,120
• B)$190,476
• C)$100,000
• D)$187,905

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