A Building Was Purchased on August 1 for $490,000

question 121

Multiple Choice

A building was purchased on August 1 for $490,000. It has a salvage value of $38,000 and a useful life of 30 years. To the nearest dollar, how much will the depreciation expense for the building be for the first year ended December 31, using the straight-line method? (Round any intermediary calculations to the nearest cent and your final answer to the nearest dollar.)

• A)$15,067
• B)$16,333
• C)$6,278
• D)$6,805

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Definitions:

Expected Value

The long-run average value of repetitions of the experiment it represents, often used in probability and statistics to predict outcomes of random events.

False Positive

An error in data testing in which a test result improperly indicates the presence of a condition (such as a disease when it is not present).

Expected Gain

The anticipated value or profit that results from a particular action or decision, often calculated in statistical or financial models.

False Negative

An error in test results in which a positive condition is incorrectly reported as negative.