An Asset Purchased for $120 000 with a Zero Residual

question 28

Multiple Choice

An asset purchased for $120 000 with a zero residual value was expected to last for six years before it needed replacing. If, at the end of the fourth year, it was decided to extend the asset's total useful life by two years (new remaining life is now eight years) , the new depreciation charge using the straight-line approach would be:

• A) $5 000
• B) $10 000
• C) $12 000
• D) $20 000

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Definitions:

Piaget

Jean Piaget was a Swiss psychologist known for his pioneering work in child development, particularly his theory of cognitive development, which describes how children construct a mental model of the world.

Developmental Psychologists

Developmental psychologists study the psychological growth and changes that occur throughout a human life span, including emotional, cognitive, and social development.

Stages

Distinct phases in a process of development or change in which specific characteristics are exhibited or challenges faced.

Piaget

A Swiss psychologist known for his pioneering work on child development, particularly his theory on the stages of cognitive development.