On January 1, Year 1, Li Company purchased an asset that cost $80,000. The asset had an expected useful life of five years and an estimated salvage value of $16,000. Li uses the straight-line method for the recognition of depreciation expense. At the beginning of the fourth year, the company revised its estimated salvage value to $8,000. What is the amount of depreciation expense to be recognized during Year 4?
A. $33,600
B. $16,800
C. $12,800
D. $20,800
Answer: B
Business
You might also like to view...
The first budget to be prepared is usually the production budget
Indicate whether the statement is true or false
Business
Correlation analysis can be used to determine whether a relationship existed between how respondents answered one item and how they answered another
Indicate whether the statement is true or false
Business
The ranking approach involves the ranking of capital expenditure projects on the basis of some predetermined measure such as the rate of return
Indicate whether the statement is true or false
Business
The murderer of a decedent cannot inherit from that decedent
Indicate whether the statement is true or false
Business