A Depreciable Asset That Cost $100,000 Had an Estimated Useful

question 71

Multiple Choice

A depreciable asset that cost $100,000 had an estimated useful life of 5 years and estimated residual value of $10,000. What is the first year for which depreciation would be greater under the straight-line method than under the declining-balance method with an acceleration rate of 200%?

• A) The first year.
• B) The second year.
• C) The third year.
• D) The fourth year.

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Definitions:

Centrioles

Cylindrical organelles near the nucleus in animal cells, involved in cellular division and the organization of the spindle fibers.

Microtubules

Cylindrical structures within the cytoplasm of eukaryotic cells that are involved in maintaining cell shape, enabling cellular transport, and facilitating cell division.

Mitotic Spindle

A structure composed of microtubules that segregates chromosomes into the daughter cells during cell division.

Centrosome

An organelle located near the nucleus in animal cells, important for the organization of microtubules and cell division.