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Microsoft

MB7-701 · Question #41

A fixed asset with a book value of $1000 is depreciated to an expected salvage value of $100 in 48 time periods. The depreciation amount must be the same each period. Which depreciation method…

The correct answer is C. Straight-Line. See the full explanation below for the reasoning.

Question

A fixed asset with a book value of $1000 is depreciated to an expected salvage value of $100 in 48 time periods. The depreciation amount must be the same each period. Which depreciation method should you assign to the depreciation book?

Options

  • ADB2/SL
  • BDeclining-Balance 1
  • CStraight-Line
  • DHalf-Year Convention

How the community answered

(21 responses)
  • A
    5% (1)
  • B
    5% (1)
  • C
    81% (17)
  • D
    10% (2)

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Full MB7-701 Practice