Piston Company Owns a Fixed Asset with an Original Cost

question 82

Multiple Choice

Piston Company owns a fixed asset with an original cost of $100,000. Piston Company estimates it will use the asset for 4 years, at which time the asset can be sold for $10,000. The annual depreciation expense is:

• A) $- 0-
• B) $22,500
• C) $25,000
• D) $10,000

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Definitions:

U.S. Government Securities

Financial instruments issued by the United States Department of the Treasury to finance federal government spending, including Treasury bills, notes, and bonds.

Chinese

Relating to China, its people, languages, or culture, including aspects of its history, traditions, and socioeconomic development.

Demand Deposits

Bank accounts from which deposited funds can be withdrawn at any time without any notice to the institution.

Federal Reserve District Bank

One of the 12 regional banks in the Federal Reserve System of the United States, each responsible for implementing the country's monetary policy within its specific district.