Oakland Company Owns a Fixed Asset with an Original Cost

question 125

Multiple Choice

Oakland Company owns a fixed asset with an original cost of $100,000.The company estimates it will use the fixed asset for 5 years,at which time the fixed asset will be sold for $10,000.The annual depreciation expense is ________.

• A)$0
• B)$10,000
• C)$18,000
• D)$20,000

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Definitions:

Magnetic Flux

Magnetic flux refers to the measure of the quantity of magnetism, considering the strength and the extent of a magnetic field.

Pole Polarity

Refers to the magnetic polarity (north or south) of the poles in a magnetic field, crucial in the functioning of electric motors and generators.

Lines of Magnetic Flux

Imaginary lines representing the strength and direction of a magnetic field, where the density of lines indicates the field's intensity.

Synchronous Speed

The speed at which the magnetic field in an AC motor rotates, dependent on the frequency of the supply current and the number of poles in the motor.