Cost of an Asset Is $1,070,000 and Its Residual Value

question 81

Multiple Choice

Cost of an asset is $1,070,000 and its residual value is $220,000.Estimated useful life of the asset is five years.Calculate depreciation for the first year using the reducing-balance method of depreciation.

• A)$340,000
• B)$214,000
• C)$428,000
• D)$170,000

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Definitions:

Information

Data, facts, or details about a subject that are obtained, received, or generated.

Spinal Cord

An extension of the brain, from the base of the brain through the neck and spinal column, that transmits messages between the brain and the peripheral nervous system.

Specialized Cell

A cell that has a specific role to perform in an organism, exhibiting unique structures and functions to carry out its particular tasks efficiently.

Nervous System

The complex network of nerves and cells transmitting signals between different parts of the body, responsible for coordinating actions and sensory information.