The Following Information Is Available on a Depreciable Asset Owned

question 222

Multiple Choice

The following information is available on a depreciable asset owned by First Bank & Trust: The asset's book value is $70,000 on October 1, Year 3. On that date, management determines that the asset's salvage value should be $5,000 rather than the original estimate of $10,000. Based on this information, the amount of depreciation expense the company should recognize during the last three months of Year 3 would be:

• A) $2,187.50
• B) $1,718.75
• C) $2,031.25
• D) $2,321.43
• E) $1,964.29

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Definitions:

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Time-based

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