Question
A firm owns a piece of equipment that it originally purchased for $250,000. The residual value is $25,000, the firm uses straight line depreciation, and
A firm owns a piece of equipment that it originally purchased for $250,000. The residual value is $25,000, the firm uses straight line depreciation, and the useful life is 20 years. How much depreciation expense does the firm show on its income statement for year 12?
| A. | $11,250 | |
| B. | $12,500 | |
| C. | $18,750 | |
| D. | $1,250 | |
| E. | $0 |
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Introduction To Corporate Finance
Authors: Laurence Booth, Sean Cleary
3rd Edition
978-1118300763, 1118300769
