Roslyn Is an Inventor

question 10

Multiple Choice

Roslyn is an inventor.She has many tools,including a hammer,a handsaw and a drill.Roslyn has a patent on her most recent invention and she owns stock in Handy Appliances,Inc.,which is a company that often uses her inventions.Roslyn's tangible personal property includes the

• A)hammer,handsaw and drill.
• B)Handy Appliances stock only
• C)patent on her invention only
• D)Handy Appliances stock and the patent on her invention.

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Definitions:

Straight-line Method

A depreciation method that allocates the cost of an asset evenly over its useful life, resulting in a constant annual depreciation expense.

Depreciation Expense

The allocation of the cost of a tangible asset over its useful life, reflecting the decrease in the asset's value over time.

Salvage Value

Salvage value is the estimated resale value of an asset at the end of its useful life.

Useful Life

The estimated period over which an asset is expected to be used before it needs to be replaced or has significantly depreciated.