A Plant Asset Was Purchased on January 1 for $45,000

question 34

Multiple Choice

A plant asset was purchased on January 1 for $45,000 with an estimated salvage value of $5,000 at the end of its useful life. The current year's Depreciation Expense is $5,000 calculated on the straight-line basis and the balance of the Accumulated Depreciation account at the end of the year is $25,000. The remaining useful life of the plant asset is

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

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Definitions:

Exports

Goods or services sent from one country to be sold in another country.

Consumption

The total value of all goods and services consumed by households, including durable goods, non-durable goods, and services.

Investment

The act of distributing funds or resources with the aim of earning an income or profit.

GDP Deflator

A financial indicator that adjusts the value of output calculated at present prices to constant-dollar GDP, to correct for inflation effects.