A Company Used Straight-Line Depreciation for an Item of Equipment

question 146

Multiple Choice

A company used straight-line depreciation for an item of equipment that cost $12,000,had a salvage value of $2,000 and a five-year useful life.After depreciating the asset for three complete years,the salvage value was reduced to $1,200 but its total useful life remained the same.Determine the amount of depreciation to be charged against the equipment during each of the remaining years of its useful life.

• A)$1,000
• B)$1,800
• C)$5,400
• D)$2,400
• E)$2,000

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Definitions:

Square Temple At Eshnunna

An ancient Sumerian ziggurat located in modern-day Tell Asmar, Iraq, notable for its square base and religious significance.

Statuettes

Small statues or sculptures, often decorative or used as religious objects, that can be made from a variety of materials including bronze, wood, and clay.

Dedications

Practices of devoting gifts or offerings to deities or persons of high honor, often found in religious or ceremonial contexts.

Murals

Large paintings or artworks directly applied or painted on walls, ceilings or other permanent surfaces.