A Building Was Purchased for $232,000

question 154

Multiple Choice

A building was purchased for $232,000. It currently has accumulated depreciation of $40,000 and had a residual value of $50,000. Assuming the use of straight-line depreciation, its estimated useful life must have been

• A) 5 years.
• B) 10 years.
• C) 14 years.
• D) impossible to determine from the facts given.

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Definitions:

Service Provided

The assistance or work performed by a company for the benefit of its customers, can be tangible or intangible.

Customers

Individuals or entities that purchase goods or services from a business, essential for generating revenue and sustaining operations.

Customer Relationship Management

A strategy for managing an organization’s relationships and interactions with current and potential customers by using data analysis to study large amounts of information.

Capture

The process of obtaining something of value, often referring to attention, data, or market share in business contexts.