On October 1, 2014, Hess Company Places a New Asset

question 279

Multiple Choice

On October 1, 2014, Hess Company places a new asset into service. The cost of the asset is $80,000 with an estimated 5-year life and $20,000 salvage value at the end of its useful life. What is the book value of the plant asset on the December 31, 2014, balance sheet assuming that Hess Company uses the double-declining-balance method of depreciation?

• A) $52,000.
• B) $60,000.
• C) $72,000.
• D) $76,000.

---

Definitions:

Nocturne In Black And Gold

A painting by James Abbott McNeill Whistler that captures the fireworks and night-time atmosphere of London's Cremorne Gardens.

Music

An art form and cultural activity involving the creation of sounds and rhythms arranged in a temporal sequence to express ideas or emotions.

The Cyclops

In Greek mythology, a member of a primordial race of giants, each with a single eye in the middle of their forehead.

Symbolist Painter

An artist who is part of the Symbolism movement, focusing on depicting the ideas and emotions suggested by the subject rather than the literal representation.