An Asset Has a Life of 3 Years

question 78

Multiple Choice

An asset has a life of 3 years.It cost $90,000 and has an expected salvage value of $15,000.Using double-declining-balance depreciation,what is the depreciation for Year 1?

• A) $29,700
• B) $60,000
• C) $15,000
• D) $50,000

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Definitions:

Unreasonably Dangerous

A description of a product's condition being beyond the expected level of danger for typical use, posing risks to users.

Ordinary Consumer

A term used to refer to an average person who buys goods and services for personal use.

Strict Product Liability

holds manufacturers, distributors, and sellers liable for damages caused by defects in their products, regardless of negligence or fault.

Plaintiff

An individual or entity that initiates a lawsuit or legal action against another party, known as the defendant.