On January 1, 2017, Grove City Corp

question 160

Multiple Choice

On January 1, 2017, Grove City Corp. purchased a ship for $2,000,000. It has a ten-year useful life and a residual value of $50,000. The company uses the double-declining-balance method.
-If Grove City Corp.continues to use the ship in its eleventh year,what is the correct accounting procedure?

• A)Take the asset off the books and record a gain on the disposal.
• B)Continue to depreciate it.
• C)The company may not use it any longer.
• D)No longer depreciate it but leave it on the records at its book value at the end of its useful life.

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Definitions:

Pollutants

Substances or energies introduced into the environment that cause harm or discomfort to organisms, including humans, or damage the natural resources.

Emissions

The release of pollutants into the environment, typically referring to gases expelled by vehicles and industrial processes.

Harm

Damage or injury that affects someone or something in a negative way, often used in legal and ethical discussions.

Reduction

The act of making something smaller or less in amount, degree, or size.