Equipment with a Cost of $160,000, an Estimated Residual Value

question 69

Multiple Choice

Equipment with a cost of $160,000, an estimated residual value of $40,000, and an estimated life of 15 years was depreciated by the straight-line method for 4 years. Due to obsolescence, it was determined that the remaining useful life should be shortened by 3 years and the residual value changed to zero. The depreciation expense for the current and future years is

• A) $11,636
• B) $16,000
• C) $11,000
• D) $8,000

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Definitions:

Nondiscriminating Consumers

Customers who do not show preference or bias towards products based on brand, appearance, or other superficial factors, focusing instead on functionality or value.

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Tata Motors

An Indian multinational automotive manufacturing company, part of the Tata Group, known for producing cars, trucks, vans, coaches, buses, sports cars, and construction equipment.

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