When Originally Purchased,a Vehicle Had an Estimated Useful Life of 8

question 148

Multiple Choice

When originally purchased,a vehicle had an estimated useful life of 8 years.The vehicle cost $23,000 and its estimated salvage value is $1,500.After 4 years of straight-line depreciation,the asset's total estimated useful life was revised from 8 years to 6 years and there was no change in the estimated salvage value.The depreciation expense in year 5: equals:

• A)$ 5,375.00.
• B)$ 2,687.50.
• C)$ 5,543.75.
• D)$10,750.00.
• E)$ 2,856.25.

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Definitions:

Co-owners

Individuals or entities who jointly own a property or asset, sharing rights, responsibilities, and benefits associated with that ownership.

Formal Agreement

A legally binding contract between two or more parties, often written and signed, outlining the terms and obligations each party agrees to.

Business for Profit

A business for profit is an organization engaged in commercial, industrial, or professional activities with the primary goal of earning financial gain.

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