Questions
MSB-250-300-002 Topic 12 Quiz
Single choice
Suppose an asset with an initial book value of $250,000 is depreciated via the straight-line method over 7 years to a salvage value of $5,000. What is the depreciation expense in year 3?
Options
A.$35,000
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Step-by-Step Analysis
First, identify the depreciation base and the annual expense. The asset cost is 250,000 and the salvage value is 5,000, so the depreciable base is 250,000 − 5,000 = 245,000. The straight-line method spreads this evenly over the 7-year useful life, so annual depreciation is 24......Login to view full explanationLog in for full answers
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