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

question 92

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 four years. Due to obsolescence, it was determined that the remaining useful life should be shortened by three years and the residual value changed to zero. The depreciation expense for the current and future years is

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

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Definitions:

Event Scope Forecasts

Projected analyses that predict the extent or magnitude of events, often used in planning and risk assessment.

Environment

The surrounding physical, natural, social, and cultural conditions in which an individual, organization, or community operates.

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Predictions or estimates of future events or trends, typically based on analysis of data.

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The practice of collecting information and attempting to spot a pattern, often used in financial markets, business intelligence, and research fields.