An Asset Was Purchased for $120,000 on January 1, 2010

question 102

Multiple Choice

An asset was purchased for $120,000 on January 1, 2010 and originally estimated to have a useful life of 10 years with a residual value of $10,000. At the beginning of 2012, it was determined that the remaining useful life of the asset was only 4 years with a residual value of $2,000. Calculate the 2012 depreciation expense using the revised amounts and straight line method.

• A) $25,000
• B) $11,000
• C) $24,000
• D) $24,500

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Definitions:

Heimlich Chest Drain Valve

A one-way valve used in chest drainage systems to prevent air or fluid from returning to the chest cavity, often used in emergency situations.

Suction Chamber

A component of medical devices that uses negative pressure to remove fluids or gases from a specific area, often found in suction units to clear airways or surgical sites.

Trachea

The windpipe, a tube connecting the pharynx and larynx to the lungs, allowing the passage of air for breathing.

Tachycardic

Characterized by an abnormally fast heart rate, typically defined as exceeding 100 beats per minute in adults.