Current Attempt in Progress Consider an asset that was separated into its main components A, B and C). The $1242000 purchase price was allocated to these components in equal proportions. The useful lives are 12, 4, and 7 years for components A, B, and C respectively. Components A and B are not expected to have any residual value, but Component C is expected to have a residual value of $18600. Assuming straight-line depreciation, total annual depreciation expense. to the nearest dollar relating to these assets is O $130071. O $103500 O $194486 O $197143.
Current Attempt in Progress Consider an asset that was separated into its main components A, B and C). The $1242000 purchase price was allocated to these components in equal proportions. The useful lives are 12, 4, and 7 years for components A, B, and C respectively. Components A and B are not expected to have any residual value, but Component C is expected to have a residual value of $18600. Assuming straight-line depreciation, total annual depreciation expense. to the nearest dollar relating to these assets is O $130071. O $103500 O $194486 O $197143.
Chapter9: Capital Budgeting And Cash Flow Analysis
Section9.A: Depreciation
Problem 5P
Question
100%

Transcribed Image Text:Current Attempt in Progress
Consider an asset that was separated into its main components A, B and C). The $1242000 purchase price was allocated to these
components in equal proportions. The useful lives are 12, 4, and 7 years for components A, B, and C respectively. Components A and B
are not expected to have any residual value, but Component C is expected to have a residual value of $18600. Assuming straight-line
depreciation, total annual depreciation expense. to the nearest dollar relating to these assets is
O $130071.
O $103500
O $194486
O $197143.
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