Equipment with a Cost of $160,000, an Estimated Residual Value

question 69

Multiple Choice

Equipment with a cost of $160,000, an estimated residual value of $40,000, and an estimated life of 15 years was depreciated by the straight-line method for 4 years. Due to obsolescence, it was determined that the remaining useful life should be shortened by 3 years and the residual value changed to zero. The depreciation expense for the current and future years is

• A) $11,636
• B) $16,000
• C) $11,000
• D) $8,000

---

Definitions:

General Plan

A broad outline or strategy intended to guide decision-making and actions in a specific area.

Negative Announcement

An announcement that delivers unfavorable news or updates to its audience.

Strategies

Plans or methods developed to achieve a specific goal or to solve problems.

Refusal Letter

A written communication used to inform an individual or entity that their request, offer, or proposal has been declined.