Equipment Costing $105,000 with a Salvage Value of $21,000 and an Estimated

question 161

Multiple Choice

Equipment costing $105,000 with a salvage value of $21,000 and an estimated life of 8 years has been depreciated using the straight-line method for 2 years.Assuming a revised estimated total life of 6 years and no change in the salvage value, the depreciation expense for Year 3 would be

• A)$15,750.
• B)$14,000.
• C)$21,000.
• D)$10,500.

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Definitions:

Stability

The state of being resistant to change, or the ability of an object or system to maintain its state when subjected to external forces.

Equilibrium

A state of balance or stability within a system, where competing influences are canceled by others, resulting in no net change.

Allopatric Speciation

The formation of new species through geographical separation, leading to reproductive isolation and genetic divergence.

Genetic Drift

A mechanism of evolution that causes random fluctuations in the frequency of alleles in a population, especially in small populations.