Ronnie's Wings Acquired Equipment on January 1, 2019, for $300,000

question 62

Multiple Choice

Ronnie's Wings acquired equipment on January 1, 2019, for $300,000. The equipment had an estimated useful life of 10 years and an estimated salvage value of $25,000. On January 1, 2022, Ronnie's Wings revised the total useful life of the equipment to eight years. Compute amortization expense for the year ended December 31, 2022, if Ronnie's Wings uses straight-line amortization.

• A)$43,500
• B)$38,500
• C)$60,000
• D)$27,500

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Definitions:

Probabilities

The measure of the likelihood that an event will occur, often quantified as a number between 0 and 1.

Simple Events

An event in probability that consists of only one outcome or occurrence and cannot be broken down further.

Probabilities

The likelihood or chance that a particular event will occur, expressed as a number between 0 and 1.

Sales

The exchange of a commodity for money; the action of selling something.