An asset cost $200,000. It has a salvage value of $40,000. It has a 10 year life. What would be its book value at the end of year one if it uses straight-line depreciation? Group of answer choices $144,000 $160,000 $40,000 $184,000

An asset cost $200,000. It has a salvage value of $40,000. It has a 10 year life. What would be its book value at the end of year one if it uses straight-line depreciation? Group of answer choices $144,000 $160,000 $40,000 $184,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

An asset cost $200,000. It has a salvage value of $40,000. It has a 10 year life. What would be its book value at the end of year one if it uses straight-line depreciation?

Group of answer choices

$144,000

$160,000

$40,000

$184,000

Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video

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