A Building with a Cost of $500 000,an Estimated Residual

question 15

Multiple Choice

A building with a cost of $500 000,an estimated residual value of $50 000,and an estimated useful life of 20 years was depreciated by the straight-line method for 10 years.In the eleventh year,it was determined that the useful life should be extended by 10 years (i.e.from 20 years to 30 years) .The residual value was to remain the same.The depreciation expense for the eleventh year is:

• A) $11 250.
• B) $12 500.
• C) $13 750.
• D) $15 000.

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Definitions:

Communist Party

A political party advocating the principles of communism, including the creation of a classless society, state control of major industries, and equality.

Labor Movement

The collective organization of working people developed to protect and further their rights and interests.

New Deal

A series of programs and policies implemented by President Franklin D. Roosevelt in the 1930s to counter the effects of the Great Depression.

Labor

Human effort, either physically or mentally, expended in the production of goods and services.