Nigeria Ltd $\begin{array}{llcc} \text { Comportent A: } &\$198,000 \\ \text {Component B: } &\$240,000\\\end{array}$

question 6

Multiple Choice

Nigeria Ltd. acquires a new machine. It is comprised of two different components (A and B) that are expected to be overhauled at different times. The acquisition costs of the components are as follows:
$\begin{array}{llcc} \text { Comportent A: } &\$198,000 \\ \text {Component B: } &\$240,000\\\end{array}$

Component A is expected to have a useful life of 5 years and a residual value of $ 20,000 before the first major overhaul is required. Component B is expected to have a useful life of 7 years and a residual value of $ 15,000 before its first overhaul. Nigeria uses straight-line depreciation for all its equipment. What is the net book value of component A after 5 years?

• A) $ 0
• B) $ 19,000
• C) $ 20,000
• D) $ 55,600

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Definitions:

Blood Pressure

The force exerted by circulating blood on the walls of the body's arteries, measured in systolic over diastolic pressure.

Arterial Oxygen Saturation

A measure of the amount of oxygen bound to hemoglobin in the blood, indicating the efficiency of oxygen transport.

Pulse Oximetry

A non-invasive method used to measure the oxygen saturation level of the blood, indicating how well oxygen is being sent to parts of the body furthest from the heart.

Acute Shortness

Likely refers to acute shortness of breath or dyspnea, a sudden and intense difficulty in breathing, often indicative of a medical condition.