On October 1, 2022, Hess Company Places a New Asset

question 54

Multiple Choice

On October 1, 2022, Hess Company places a new asset into service.The cost of the asset is $120,000 with an estimated 5-year life and $30,000 salvage value at the end of its useful life.What is the book value of the plant asset on the December 31, 2022 balance sheet assuming that Hess Company uses the double-declining-balance method of depreciation?

• A)$78,000.
• B)$90,000.
• C)$108,000.
• D)$114,000.

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Definitions:

Last Recession

The most recent period of significant decline in economic activity spread across the economy, lasting more than a few months, typically visible in real GDP, real income, employment, industrial production.

Month/Year

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A decrease in the general price level of goods and services, often indicating a contraction in the amount of money or credit available in the economy.

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