SportsWorld Uses Straight-Line Depreciation for a Piece of Equipment That

question 43

Multiple Choice

SportsWorld uses straight-line depreciation for a piece of equipment that cost $12,000,had a salvage value of $2,000,and a five-year service life.At the end of the first year,an impairment loss of $2,000 was recognized on the asset.Calculate the amount of depreciation expense for each of the remaining years of the asset's useful life.

• A)$1,500
• B)$1,600
• C)$2,500
• D)$1,800
• E)$2,000

---

Definitions:

Global Industry

Economic activities that occur on an international scale, transcending national borders and involving the production, distribution, and marketing of goods and services worldwide.

Tourism

The activity of traveling to places for pleasure and exploration.

Transnationals

Corporations or enterprises that operate in multiple countries, transcending national borders in their activities, production, and management.

Economic Refugees

Individuals or groups who are forced to leave their home country due to severe economic hardship, in search of a better standard of living elsewhere.