In Order to Calculate the Third Year's Depreciation on an Asset

question 58

Multiple Choice

In order to calculate the third year's depreciation on an asset using the sum-of- the-years'-digits method,which of the following must be known about the asset?

• A) Its acquisition cost
• B) Its estimated salvage value
• C) Its estimated useful life
• D) All of these must be known.

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Definitions:

Grams

A unit of mass in the metric system, equal to one thousandth of a kilogram.

HI

The chemical formula for hydrogen iodide, a diatomic molecule.

KOH

Potassium Hydroxide, a strong alkali used in various chemical processes and as a cleaning agent.