A Company Used Straight-Line Depreciation for an Item of Equipment

question 114

Multiple Choice

A company used straight-line depreciation for an item of equipment that cost $12,000,had a salvage value of $2,000,and had a five-year useful life.After depreciating the asset for three complete years,the salvage value was reduced to $1,200 and its total useful life was increased from 5 years to 6 years.Determine the amount of depreciation to be charged against the machine during each of the remaining years of its useful life:

• A)$1,000.
• B)$1,800.
• C)$1,467.
• D)$1,600.
• E)$2,160.

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Definitions:

Behavior Modification

A therapeutic approach designed to change specific behaviors by utilizing principles of learning theory.

Rational-Emotive Therapists

Mental health professionals who apply rational emotive behavior therapy (REBT) techniques to help individuals challenge and change irrational beliefs and behaviors.

Cognitive Therapist

A professional who helps people address problematic thoughts and behaviors through cognitive-behavioral therapy.

Behavior Therapist

A type of therapist who specializes in the treatment of psychological disorders by changing maladaptive behaviors into healthier ones.