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.

Identify factors contributing to variations in productivity and real GDP per person across countries.

Comprehend the concept of productivity and how it is measured.

Recognize the relationship between real GDP per person, standards of living, and economic growth.

Grasp the significance of human capital in economic growth and productivity.

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Definitions:

Asset Account

A financial account that represents the resources owned by a company, which have future economic value.

Liability Account

An accounting record that represents debts or obligations a company owes to others.

Cash Basis

An accounting method where revenues are recognized when received and expenses when paid, contrasting with accrual basis accounting.

Incurred

Costs or expenses that a company has obtained or become responsible for as a result of its operations.