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:

Planned Change

A deliberate effort to improve a system or process according to a specific set of objectives.

Strategic Plan

A roadmap created by an organization to guide its objectives and goals, outlining how it will achieve its long-term vision.

Evaluation of Change

The process of assessing the impacts and effectiveness of changes implemented within an organization, including strategic, structural, or procedural adjustments.

Human Resource Information System

A software or online solution used to collect, store, manage, and interpret data related to an organization's human resource operations.