A Building with a Cost of $500 000,an Estimated Residual

question 15

Multiple Choice

A building with a cost of $500 000,an estimated residual value of $50 000,and an estimated useful life of 20 years was depreciated by the straight-line method for 10 years.In the eleventh year,it was determined that the useful life should be extended by 10 years (i.e.from 20 years to 30 years) .The residual value was to remain the same.The depreciation expense for the eleventh year is:

• A) $11 250.
• B) $12 500.
• C) $13 750.
• D) $15 000.

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Definitions:

Selective Attention

The cognitive process of focusing on a particular object in the environment for a certain period of time while ignoring irrelevant information that is simultaneously occurring.

Stereotypes

Overgeneralized beliefs about a particular group or category of people, often resulting in prejudgement and oversimplification.

Minority Identity

The sense of belonging to a specific demographic smaller in number within a larger population, often associated with cultural, racial, or social attributes.

Hindsight Bias

The propensity to think that one could have predicted the outcome once an event has happened.