If the Original Expected Life Remained the Same (I

question 130

Multiple Choice

If the original expected life remained the same (i.e., 5-years) , but at the beginning of 2016, the salvage value was revised to $4,000, the annual depreciation expense for each of the remaining years would be:

• A)$2,720.
• B)$13,600.
• C)$7,400.
• D)$6,800.

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Definitions:

Planning Function

An essential management activity that involves setting objectives and determining a course of action for achieving those objectives.

Nonprogrammed Decision

This type of decision is made in response to situations that are unique, are poorly defined and largely unstructured, and have important consequences for the organization.

Reordering

The process of ordering additional stock to replenish inventory before it runs out.