Equipment with a Cost of $160,000, an Estimated Residual Value

question 92

Multiple Choice

Equipment with a cost of $160,000, an estimated residual value of $40,000, and an estimated life of 15 years was depreciated by the straight-line method for four years. Due to obsolescence, it was determined that the remaining useful life should be shortened by three years and the residual value changed to zero. The depreciation expense for the current and future years is

• A) $11,636
• B) $16,000
• C) $11,000
• D) $8,000

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Definitions:

Video

Moving visual media that can be recorded, streamed, or played back for the purpose of entertainment, education, or communication.

Single Business Plan

A strategic document outlining the operational and financial objectives of a business, and detailed plans and budgets showing how the objectives are to be realized.

Audiences

Groups of people who gather to watch, listen to, or read something, often targeted by media, performances, or written works.

Planning

A process of envisioning the future for a business, including what one plans to do and how one plans to do it.