Assume That an Asset Was Bought at a Cost of $50

question 28

Multiple Choice

Assume that an asset was bought at a cost of $50 000.It is expected that the asset will have a useful life of 10 years with the straight-line depreciation method being used.At the beginning of year 5 the total useful life is re-estimated downward to 8 years.Under AASB 116 the annual depreciation expense for the final years of useful life is:

• A) $7500
• B) $5000
• C) $4500
• D) $3000

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Definitions:

Stressors

Various physical or psychological factors that cause stress to an individual, potentially impacting health and wellbeing.

Positive Outlook

An optimistic attitude that emphasizes expecting good and favorable outcomes.

Catharsis

The process of releasing, and thereby providing relief from, strong or repressed emotions.

Emotional Tension

The psychological state resulting from prolonged emotional stress or conflict.