A Company Purchases for $24,000 an Asset That Has a Useful

question 211

Multiple Choice

A company purchases for $24,000 an asset that has a useful life of six years and no salvage value.After two years,the company spends $4,000 for a major overhaul that will extend the machine's useful life four years beyond the original six.Assuming straight-line depreciation,how much depreciation should be taken in year 3?

• A) $2,800
• B) $2,500
• C) $2,000
• D) $4,000

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Logical Locations

Strategic placement of elements or information in a way that follows a clear and understandable order or rationale.

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The act of providing details or characteristics of someone or something.

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The process by which a computer system starts up, initializing the operating system and hardware before becoming usable.

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An electronic device capable of processing, storing, and displaying data, used for a wide range of tasks, from calculation to internet browsing.