CFA Practice Question

There are 520 practice questions for this study session.

CFA Practice Question

Taylor Corporation purchased a new asset for $80,000. The asset had an estimated life of 5 years and an estimated salvage value of $20,000. What is the depreciation expense for the second year if the company uses the straight-line method?
A. $16,000
B. $12,000
C. $14,440
Explanation: The depreciation expense each year for five years would be $12,000 [($80,000 - $20,000)/5].

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