An Asset Has a Life of 3 Years

question 87

Multiple Choice

An asset has a life of 3 years. It costs $90 000 and has an expected residual value of $15 000. Using straight- line depreciation, what is the depreciation expense each of the three years?

• A)$45 000
• B)$25 000
• C)$30 000
• D)$35 000

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Definitions:

Price Discrimination

The strategy of selling the same product or service at different prices to different customers, based on factors like location, customer segment, or purchase volume.

Wholesalers

Entities involved in the distribution process, typically selling goods in large quantities to retailers, other merchants, or industrial, commercial, and institutional users.

Principle-Based Statement

A declaration or assertion that is grounded in established principles or fundamental truths.

Code of Ethics

A set of principles and standards that guides ethical professional conduct and decision making within an organization.