On October 1, 2010, Holt Company Places a New Asset

question 127

Multiple Choice

On October 1, 2010, Holt Company places a new asset into service. The cost of the asset is $60,000 with an estimated 5-year life and $15,000 salvage value at the end of its useful life. What is the depreciation expense for 2010 if Holt Company uses the straight-line method of depreciation?

• A) $2,250
• B) $12,000
• C) $3,000
• D) $6,000

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Definitions:

Mediterranean Sea

An almost entirely land-enclosed sea that connects to the Atlantic Ocean, bordered by the Mediterranean region.

Delta

A delta is a landform at the mouth of a river where it spreads out into several branches before entering a larger body of water, typically formed from sediment deposition.

Tectonics

The branch of geology concerned with the structure and motion of the Earth's crust and large scale structural features such as mountains and ocean basins.

Bedrock

The layer of solid rock located beneath the surface soil or sediment, acting as a foundation for terrestrial landscapes.