An Asset Was Purchased for $300,000

question 174

Multiple Choice

An asset was purchased for $300,000. It had an estimated salvage value of $60,000 and an estimated useful life of 10 years. After 5 years of use, the estimated salvage value is revised to $48,000 but the estimated useful life is unchanged. Assuming straight-line depreciation, depreciation expense in Year 6 would be

• A) $36,000.
• B) $26,400.
• C) $18,000.
• D) $25,200.

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Definitions:

-pnea

A suffix used in medical terms to denote a condition related to breathing, such as apnea (absence of breathing) or dyspnea (difficulty breathing).

Prefix

A group of letters placed at the beginning of a word to alter its meaning or create a new word, such as “un-” in “unhappy”.

-rrhea

A suffix used in medical terminology indicating a flow or discharge of a particular substance.

-pathy

A suffix used in medical terminology to denote a disorder or disease of a specified type or location.