An asset purchased for $125,000 on the first day of the fiscal year with a useful life of 5 years has an annual depreciation expense of $25,000.

Name: An asset purchased for $125,000 on the first day of the fiscal year with a useful life of 5 years has an annual depreciation expense of $25,000.
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Question

Quizplus · Accepted Answer

The annual depreciation expense is calculated by dividing the cost of the asset by its useful life, which is $125,000/5 = $25,000. Therefore, the statement is true.

An Asset Purchased for $125,000 on the First Day of the Fiscal