A Building Was Purchased on August 1 for $450,000

question 78

Multiple Choice

A building was purchased on August 1 for $450,000.It has a salvage value of $38,000 and a useful life of 35 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?

• A)$12,857
• B)$5,357
• C)$4,905
• D)$11,771

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Definitions:

Flexible Budget

A budget that changes in response to variations in activity levels or volume.

Variable Budget

A financial plan that adjusts for changes in the volume of activity, allowing for flexibility in spending.

Budgeted Production

Budgeted Production involves estimating the quantity of goods or services that a company plans to produce over a specific period as part of its operational and financial planning efforts.

Inventory Units

Units or quantities of stock items kept on hand by a business for the purpose of production or sales.