An Asset Has a Cost of $80 000, Estimated Residual

question 104

Multiple Choice

An asset has a cost of $80 000, estimated residual value of $20 000 and estimated useful life of five years. What is the amount of the depreciation expense for the first year, assuming the reducing-balance method is used and the annual rate is 30%?

• A) $12 000
• B) $16 000
• C) $18 000
• D) $24 000

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