An Asset Was Purchased for $58,000 and Originally Estimated to Have

question 229

Multiple Choice

An asset was purchased for $58,000 and originally estimated to have a useful life of 10 years with a residual value of $3,000. After two years of straight-line depreciation, it was determined that the remaining useful life of the asset was only 2 years with a residual value of $2,000. What will be the annual depreciation for the asset?

• A) $5,500
• B) $5,800
• C) $22,500
• D) $23,500

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Definitions:

Pampered Chef

A multi-level marketing company that sells kitchen tools, food products, and cookbooks for home cooking and entertaining.

Direct Selling

A marketing strategy in which goods are sold directly to customers, avoiding conventional retail settings.

Wholesale Selling

The act of selling goods in large quantities at lower prices to retailers or other merchants, who then sell to end consumers.

Account Representation

The process or act of managing customer accounts by a designated sales or service representative within an organization.