The Following Information Is Available on a Depreciable Asset Owned

question 197

Multiple Choice

The following information is available on a depreciable asset owned by Mutual Savings Bank: The asset's book value is $70,000 on July 1,Year 3.On that date,management determines that the asset's salvage value should be $5,000 rather than the original estimate of $10,000.Based on this information,the amount of depreciation expense the company should recognize during the last six months of Year 3 would be:

• A)$8,125.00
• B)$7,375.00
• C)$4,062.50
• D)$3,750.00
• E)$7,812.50

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Definitions:

Pleasure Marriage

A temporary marriage contract, recognized in some cultures or religions, primarily aimed at legalizing sexual relations for a determined period.

Premarital Contract

An agreement between individuals planning to marry that outlines the management of their assets and financial matters upon marriage.

Informal Contract

A contract that requires no formalities. Also called simple contract.

Formal Contract

A contract that must have a special form or must be created in a specific manner.