Store of Values Inc

question 79

Multiple Choice

Store of Values Inc. has a new building that cost $400,000. It will be depreciated using DB amortization. The estimated residual value of the building is $50,000 and it has an expected useful life of 10 years. Assuming the first year's amortization expense was recorded properly, what would be the amount of amortization expense for the second year?

• A) $31,500
• B) $35,000
• C) $36,000
• D) $40,000

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Definitions:

Progressive Relaxation

A technique involving the tensing and relaxing of muscle groups in sequence to achieve physical and mental relaxation.

Feared Object

An object or situation that elicits a strong fearful or phobic reaction from an individual.

Token Economy

A behavior modification system that uses tokens as a form of reward for performing targeted behaviors, which can later be exchanged for specific rewards.

Accumulates

means to gather or collect items over time, often resulting in an increasing quantity.