On April 1, 2018, Check Mate Ltd

question 30

Multiple Choice

On April 1, 2018, Check Mate Ltd. places a new asset into service. The cost of the asset is $40,000 with an estimated 8-year life and $2,500 residual value. Assuming that Check Mate uses the double diminishing-balance method of depreciation, what is the carrying amount of the asset at December 31, 2018?

• A) $32,500
• B) $30,625
• C) $38,125
• D) $35,000

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Definitions:

Economy

The system of production, distribution, and consumption of goods and services within a particular geographic region.

Qualitative Models

These are non-numerical frameworks or approaches used to understand patterns, processes, or behaviors in various fields such as social sciences or business.

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The process of setting organizational goals, developing strategies to achieve those goals, and outlining specific plans of action in a structured manner.

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