On January 1, Year 1, Li Company Purchased an Asset

question 155

Multiple Choice

On January 1, Year 1, Li Company purchased an asset that cost $80,000. The asset had an expected useful life of five years and an estimated salvage value of $16,000. Li uses the straight-line method for the recognition of depreciation expense. At the beginning of the fourth year of usage, the company revised its estimated salvage value to $8,000. Based on this information, the amount of depreciation expense to be recognized at the end of Year 4 is:

• A) $12,800.
• B) $16,800.
• C) $33,600.
• D) $20,800.

---

Definitions:

Responsible

Describes someone or something reliable and accountable for actions or duties.

Particular Task

A specific duty or responsibility assigned to someone as part of their job or role.

Situational Leadership Theory

A leadership model proposed by Hersey and Blanchard which suggests that the most effective leadership style varies with the readiness or development level of the followers.

Consideration Concerns

involve being mindful and accommodating of the feelings, needs, and interests of others.