Blanton Company Bought Equipment on January 1, 2012, with a Cost

question 126

Multiple Choice

Blanton Company bought equipment on January 1, 2012, with a cost of $160,000, an estimated residual value of $40,000, and an estimated life of 15 years was depreciated by the straight-line method for 4 years.Due to obsolescence, it was determined at the beginning of 2016 that the useful life should be shortened by 3 years and the residual value changed to zero.What is the accumulated depreciation at the end of 2015?

• A) $42,667
• B) $32,000
• C) $40,000
• D) $8,000

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Definitions:

Government Builds

Refer to initiatives or infrastructure projects undertaken by a government to develop or enhance the country's physical assets and services.

Water-treatment Plant

A facility that processes water to remove contaminants and make it safe for drinking and other uses.

Crowding out

A situation where increased public sector spending reduces or eliminates private sector spending or borrowing due to higher interest rates.

Government Spending

The total amount of public sector expenditure on goods and services, including investments and transfers, which influences economic activity.