Your Accounting Records Show That an Asset in Use Has

question 49

Multiple Choice

Your accounting records show that an asset in use has book value of $7 119.14. The asset cost $30 000 when it was purchased and has been depreciated under the declining balance depreciation method with a 25% depreciation rate. How many years has the asset been in service?

• A)1 year
• B)2 years
• C)3 years
• D)4 years
• E)5 years

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Definitions:

Positive Externalities

Benefits experienced by third parties or society at large from an economic transaction, such as improved public health or education levels, not reflected in market prices.

Subsidies

Financial support from the government to businesses, individuals, or other governmental bodies to encourage or maintain an activity that has a public good.

Liability Rules

Legal principles that determine how the responsibility for damages or losses is allocated among parties in legal disputes.

Pollution

The occurrence or entry of harmful or toxic materials into the environment.