On January 1,2015,Li Company Purchased an Asset That Cost $80,000

question 94

Multiple Choice

On January 1,2015,Li Company purchased an asset that cost $80,000.The asset had an expected useful life of five years and an estimated salvage value of $16,000.Li uses the straight-line method for the recognition of depreciation expense.At the beginning of the fourth year of usage,the company revised its estimated salvage value to $8,000.Based on this information,the amount of depreciation expense to be recognized at the end of 2018 is:

• A)$12,800.
• B)$16,800.
• C)$33,600.
• D)$20,800.

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Definitions:

Most Efficient Output

Refers to the highest amount of goods or services that can be produced with a given set of resources and technology without wasting any resources.

Computerization

The process of applying computer technology and systems to automate tasks, processes, and operations, transforming how work is done, data is managed, and information is shared.

Perfect Competition

A market structure characterized by a complete absence of rivalry among the producers, with many buyers and sellers, where all entities sell an identical product.

Perfect Knowledge

A hypothetical situation in economics where all consumers and producers have complete and instantaneous knowledge of all market prices, conditions, and trends.