Radison Company Owns a Fixed Asset with an Original Cost

question 37

Multiple Choice

Radison Company owns a fixed asset with an original cost of $100,000.The company estimates it will use the fixed asset for 5 years,at which time the fixed asset will be sold for $5,000.The company uses straight-line depreciation.The annual depreciation expense is ________.

• A) $0
• B) $10,000
• C) $18,000
• D) $19,000