An Asset Was Purchased for $100,000

question 252

Multiple Choice

An asset was purchased for $100,000. It had an estimated salvage value of $25,000 and an estimated useful life of 10 years. After 5 years of use, the estimated salvage value is revised to $20,000 but the estimated useful life is unchanged. Assuming straight-line depreciation, depreciation expense in Year 6 would be

• A) $15,000.
• B) $10,625.
• C) $8,500.
• D) $12,500.

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Definitions:

Type 2 Diabetes Mellitus

A chronic condition characterized by high blood sugar levels due to the body's improper use or production of insulin.

Diabetes

Diabetes is a chronic medical condition where the body cannot properly regulate blood glucose levels due to inadequate insulin production or action.

Medical Record

A comprehensive and systematic documentation of a patient's medical history and care over time, including diagnoses, treatments, and outcomes.

ICD-9-CM

The International Classification of Diseases, Ninth Revision, Clinical Modification; a system used in the United States to code and classify morbidity data from inpatient and outpatient records.