**Depreciation Calculation Example:**Marissa's company recently purchased a depreciable asset for $190,000. The estimated salvage value is $18,000, and the estimated useful life is 8 years. The straight-line method will be used for depreciation. Given this information, the depreciable base of the asset will be:- $115,000.- $208,000.- **$172,000.**- $23,750.Users can select an option and submit their answer.**Explanation:**To find the depreciable base, subtract the salvage value from the asset's cost:\[\text{Depreciable Base} = \text{Cost} - \text{Salvage Value} = \$190,000 - \$18,000 = \$172,000\]In this example, the correct answer is $172,000.

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Description: **Depreciation Calculation Example:**Marissa's company recently purchased a depreciable asset for $190,000. The estimated salvage value is $18,000, and the estimated useful life is 8 years. The straight-line method will be used for depreciation. Giv

Depreciation is an outlay reported in the books of a business entity to report the regular usage of the asset.Depreciable base=Cost of asset-Salvage value=$190,000-$18,000=$172,000

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Marissa's company recently purchased a depreciable asset for $190,000. The estimated salvage value is $18,000, and the estimated useful life is 8 years. The straight-line method will be used for depreciation. Given this information, the depreciable base of the asset will be O $115,000. O $208,000. O $172,000. O $23,750.

Marissa's company recently purchased a depreciable asset for $190,000. The estimated salvage value is $18,000, and the estimated useful life is 8 years. The straight-line method will be used for depreciation. Given this information, the depreciable base of the asset will be O $115,000. O $208,000. O $172,000. O $23,750.

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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