A Building Was Purchased for $50,000

question 101

Multiple Choice

A building was purchased for $50,000. The asset has an expected useful life of 6 years and depreciation expense each year is $8,000 using the straight-line method. What is the residual value of the building?

• A) $0.
• B) $2,000.
• C) $4,000.
• D) $6,000.

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