Hahn Cotakes a Full Year's Depreciation Expense in the Year of of an Asset's

question 63

Multiple Choice

Hahn Co.takes a full year's depreciation expense in the year of an asset's acquisition and no depreciation expense in the year of disposition.Data relating to one of Hahn's depreciable assets at December 31, 2011 are as follows: Using the same depreciation method as used in 2009, 2010, and 2011, how much depreciation expense should Hahn record in 2012 for this asset?

• A)$16,000
• B)$24,000
• C)$28,000
• D)$32,000

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Definitions:

Financing Activities

Transactions with creditors or investors used to fund either company operations or expansions.

Investing Activities

Refers to the purchasing and selling of long-term assets and other investments, not including cash equivalents, which are reported in a company's cash flow statement.

Indirect Method

A cash flow statement approach that adjusts net income for the effects of non-cash transactions and changes in working capital to calculate cash from operating activities.

Accumulated Depreciation

The cumulative total of depreciation costs noted for an asset since it was acquired.