Answer:
2018 forecasted depreciation expense = 2065 thousand
so correct option is D. $2,065 thousand
Explanation:
given data
2017 2016
Total revenue $102,500 $99,400
gross 41,300 38,700
net 16,540 14,905
Depreciation expense 1,935 1,655
revenue growth = 5 %
to find out
2018 forecasted depreciation expense
solution
we know here Depreciation expense for 2017 is = 1935
and Divide by Property, plant, equipment, gross 2016 is = 38700
and Depreciation rate for 2017 = 5.00%
Property, plant, equipment, gross 2017 = 41300
Depreciation rate = 5.00%
so for 2018 forecasted depreciation expense is
2018 forecasted depreciation expense = gross 2017 × Depreciation rate ........1
2018 forecasted depreciation expense = 41300 × 5%
2018 forecasted depreciation expense = 2065 thousand
so correct option is D. $2,065 thousand
