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An asset cost $200,000.  It has a salvage value of $40,000.  It has a 10 year life.  What would accumulated depreciation be at the end of three years assuming straight line depreciation? Group of answer choices $60,000 $40,000 $48,000 $160,000

An asset cost $200,000.  It has a salvage value of $40,000.  It has a 10 year life.  What would accumulated depreciation be at the end of three years assuming straight line depreciation? Group of answer choices $60,000 $40,000 $48,000 $160,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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An asset cost $200,000.  It has a salvage value of $40,000.  It has a 10 year life.  What would accumulated depreciation be at the end of three years assuming straight line depreciation?
Group of answer choices
$60,000
$40,000
$48,000
$160,000
 
Expert Solution
Step 1

There are different methods of deprecation that are commonly used like straight line depreciation method, double declining deprecation method, etc.

In case of the straight line method of depreciation the value of asset is depreciated or reduced in an uniform manner in each period.

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Section 179 Deduction and Modified Accelerated Cost Recovery System (MACRS) Depreciation
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