Darth Vader lightsaber is a depreciable asset. He uses the straight-line depreciation method. He purchased the lightsaber on August 1, 20x1 for $85,500. It has a salvage value of $10,800 and has a useful life of 9 years. The book value on Darth Vader's lightsaber is $68,900 on July 1, 20x3. On that date, Darth Vader determines that the asset's salvage value should be $5,800 instead of the original estimate of $10,800. What is the depreciation expense Darth Vader should recognize during the last six months of 20x3? Multiple Choice $4,507.14 $2,460.71 $1,867.86
Darth Vader lightsaber is a depreciable asset. He uses the straight-line depreciation method. He purchased the lightsaber on August 1, 20x1 for $85,500. It has a salvage value of $10,800 and has a useful life of 9 years. The book value on Darth Vader's lightsaber is $68,900 on July 1, 20x3. On that date, Darth Vader determines that the asset's salvage value should be $5,800 instead of the original estimate of $10,800. What is the depreciation expense Darth Vader should recognize during the last six months of 20x3? Multiple Choice $4,507.14 $2,460.71 $1,867.86
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter10: Fixed Assets And Intangible Assets
Section: Chapter Questions
Problem 3CP: Tuttle Construction Co. specializes in building replicas of historic houses. Tim Newman, president...
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