Equipment Costing $40,000 with a Salvage Value of $8,000 and an Estimated

question 176

Multiple Choice

Equipment costing $40,000 with a salvage value of $8,000 and an estimated life of 8 years has been depreciated using the straight-line method for 2 years. Assuming a revised estimated total life of 5 years and no change in the salvage value, the depreciation expense for Year 3 would be

• A) $4,800.
• B) $10,667.
• C) $8,000.
• D) $6,400.

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Definitions:

Electroconvulsive Therapy

A mental health therapy where electric shocks are used to provoke seizures in individuals, aiming to alleviate psychological conditions.

Schizophrenia

A mental health disorder characterized by distortions in thinking, perception, emotions, language, sense of self, and behavior.

Mental Disorder

A broad range of conditions affecting mood, thinking, and behavior, often resulting in distress or impairment in daily functioning.

Brain Stimulation

A method used in neuromodulation therapies to alter the electrical activity in specific parts of the brain.