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

question 70

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,the company revised its estimated salvage value to $8,000.What is the amount of depreciation expense to be recognized during Year 4?

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

---

Definitions:

Organization Conduct

Pertains to the behavior, ethics, and practices that an organization follows in its operations and interactions with stakeholders.

Price Elasticity

A measure of the responsiveness of demand or supply for a good or service to changes in its price, indicating how quantity demanded or supplied shifts when prices move.

Linear Demand Curve

A graphical representation showing a straight-line relationship between product price and the quantity of the product demanded.

High Prices

The situation where goods or services are offered at elevated prices, often due to high demand, low supply, or premium quality.