When originally purchased, a vehicle costing $23,000 had an estimated useful life of 8 years and an estimated salvage value of $3,000. After 4 years of straight-line depreciation, the asset's total estimated useful life was revised from 8 years to 6 years and there was no change in the estimated salvage value. The depreciation expense in year 5 equals:
A. $2,500.
B. $5,000.
C. $11,500.
D. $2,875.
E. $5,750.
Answer: B
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In order to explain the change in the master cash account between the beginning and the end of the period, the accountant reconstructs the entries originally made in the accounts during the period and enters them in appropriate T-accounts on the T-account work sheet. By explaining the changes in balance sheet accounts other than cash, this process also explains the change in
a. cash and cash equivalents. b. cash, only. c. working capital. d. cash and marketable securities. e. funds.
An entrepreneur can define levels of incremental functionality or additional services to base-level product or service. What is the end result?
a. A smarter planet b. A platform c. A good, better, best suite of offerings d. An adjacency move
It is advisable to maximize the use of coercive power because it increases productivity.
Answer the following statement true (T) or false (F)
Two products, QI and VH, emerge from a joint process. Product QI has been allocated $9,600 of the total joint costs of $12,000. A total of 9,000 units of product QI are produced from the joint process. Product QI can be sold at the split-off point for $13 per unit, or it can be processed further for an additional total cost of $54,000 and then sold for $18 per unit. If product QI is processed further and sold, what would be the financial advantage (disadvantage) for the company compared with sale in its unprocessed form directly after the split-off point?
A. $108,000 B. ($18,600) C. ($9,000) D. $600