A Depreciable Asset Currently Has a $40,100 Book Value

question 202

Multiple Choice

A depreciable asset currently has a $40,100 book value.The company owning the asset uses straight-line depreciation.They paid $70,000 for this asset and consider it to have a $1,000 salvage value with a 12-year useful life.How long has the company owned this asset?

• A)5.2 years
• B)7 years
• C)10.2 years
• D)12 years
• E)Cannot be determined from the given information.

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Definitions:

Square Root

A specific value that, when it is multiplied by itself, reproduces the initial figure.

Subtraction

A mathematical operation that represents the operation of removing objects from a collection.

Pendulum Clock

A clock that keeps time by using a swinging weight, or pendulum, as its timekeeping element.

Complete Cycle

A full sequence of events that returns to the starting point or condition, often referred to in contexts like oscillations or business cycles.