Custom Closets Purchased Office Fixtures on January 1

question 77

Multiple Choice

Custom Closets purchased office fixtures on January 1.The cost was $12,000,and the fixtures had a residual value of $2,000.The fixtures were given a useful life of 8 years.After the end of three years,it was determined that the fixtures would be obsolete in 2 more years and their residual value would still be $2,000.What will be the depreciation under the straight-line method to the nearest dollar be for the fourth year?

• A)$1,500
• B)$1,250
• C)$3,125
• D)$3,750

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Definitions:

Project Organization

A company using a fixed-position layout because it is typically involved in large, complex projects such as construction or exploration.