A Long-Lived Asset Was Purchased on January 1 for $30,000

question 215

Multiple Choice

A long-lived asset was purchased on January 1 for $30,000 with an estimated residual value of $6,000 at the end of its useful life. The current year's depreciation expense is $3,000 calculated on the straight-line basis and the balance of the accumulated depreciation account at the end of the year is $15,000. The remaining useful life of the asset is

• A) 10 years.
• B) 8 years.
• C) 5 years.
• D) 3 years.

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Definitions:

Experimental Research

A research methodology that involves manipulating one or more variables to determine their effect on a certain outcome, allowing for cause-and-effect inferences.

Independent Variable

In experimental and research settings, it is the variable that is manipulated or changed to observe its effects on a dependent variable.

Dependent Variable

The variable in an experiment that is expected to change in response to manipulations of the independent variable.

Measured Variable

A specific entity or characteristic that can be quantified or observed in a research study.