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When originally purchased, a vehicle had an estimated useful life of 8 years. The vehicle cost $35,000 and its estimated residual value is $3,000. After 3 years of straight-line depreciation, the asset's total estimated useful life was revised from 8 years to 4 years and there was no change in the estimated residual value. The Depreciation Expense in year 4 is: Multiple Choice O O $8,000 $20,000. $7,725. $5,275.

When originally purchased, a vehicle had an estimated useful life of 8 years. The vehicle cost $35,000 and its estimated residual value is $3,000. After 3 years of straight-line depreciation, the asset's total estimated useful life was revised from 8 years to 4 years and there was no change in the estimated residual value. The Depreciation Expense in year 4 is: Multiple Choice O O $8,000 $20,000. $7,725. $5,275.

FINANCIAL ACCOUNTING
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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When originally purchased, a vehicle had an estimated useful life of 8 years. The vehicle cost $35,000 and its estimated residual value is $3,000. After 3 years of straight-line depreciation, the asset's total estimated useful life was revised from 8 years to 4 years and there was no change in the estimated residual value. The Depreciation Expense in year 4 is: Multiple Choice $8,000. $20,000. $7,725. $5,275.
Transcribed Image Text:When originally purchased, a vehicle had an estimated useful life of 8 years. The vehicle cost $35,000 and its estimated residual value is $3,000. After 3 years of straight-line depreciation, the asset's total estimated useful life was revised from 8 years to 4 years and there was no change in the estimated residual value. The Depreciation Expense in year 4 is: Multiple Choice $8,000. $20,000. $7,725. $5,275.
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