When Originally Purchased,a Vehicle Had an Estimated Useful Life of Eight

question 30

Multiple Choice

When originally purchased,a vehicle had an estimated useful life of eight years.The vehicle cost $23,000 and its estimated salvage value is $1,500.After four years of straight-line depreciation,the asset's total estimated useful life was revised from eight years to six years and there was no change in the estimated salvage value.The depreciation expense in year 5 equals:

• A)$5,375.00
• B)$2,687.50
• C)$5,543.75
• D)$10,750.00
• E)$2,856.25

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Definitions:

Production Possibilities Frontier

A curve that represents the maximum productive capacity of an economy when all resources are fully utilized.

Consumption Possibilities

The range of goods and services that a consumer can afford to purchase at a given level of income and prices.

Trade

The exchange of goods and services between individuals or entities, typically in an attempt to benefit from differences in cost or value.

Trade-off

A situation that involves losing one quality, aspect, or amount of something in return for gaining another quality, aspect, or amount.