Elena Purchased a Stamp Collection for $5,000 Thirty Years Ago

question 33

Multiple Choice

Elena purchased a stamp collection for $5,000 thirty years ago.If it appreciated 8% annually,what is it worth today?

• A)$17,000
• B)$36,400
• C)$50,313
• D)$123,023
• E)$150,000

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Definitions:

Residual Value

The estimated value that an asset will realize upon the end of its useful life, often used in calculating depreciation.

Straight-Line Method

A depreciation method that allocates the cost of an asset evenly over its useful life.

FASB

The Financial Accounting Standards Board, an independent organization responsible for establishing accounting and financial reporting standards in the US.

IASB

International Accounting Standards Board, the organization responsible for developing and publishing international financial reporting standards.