An Asset Was Purchased for $58,000 and Originally Estimated to Have

question 229

Multiple Choice

An asset was purchased for $58,000 and originally estimated to have a useful life of 10 years with a residual value of $3,000. After two years of straight-line depreciation, it was determined that the remaining useful life of the asset was only 2 years with a residual value of $2,000. What will be the annual depreciation for the asset?

• A) $5,500
• B) $5,800
• C) $22,500
• D) $23,500

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Definitions:

Overlook Differences

To ignore or disregard variations or disparities among individuals or situations, often to maintain harmony or focus on similarities.

Protect

refers to actions taken to ensure the safety or integrity of something or someone, preventing harm or damage.

Correcting Misinformation

The process of rectifying incorrect information, beliefs or facts.

Facilitating Introductions

The process of making people acquainted with each other, often used in social, professional, or networking contexts to build connections and foster communication.