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Jet001 [13]
4 years ago
5

Holly, Inc. has a building that originally cost $562,500. Holly expects to be able to sell the facility for $160,500 at the end

of its useful life. The balance of the related Accumulated Depreciation account is $387,000. The residual value of the facility is:__________.
A. $226,500.
B. $175,500.
C. $160,500.
D. $402,000.
Business
1 answer:
storchak [24]4 years ago
6 0

Answer:

C. $160,500.

Explanation:

Depreciation: The depreciation is an expense that shows a reduction in the value of the fixed assets due to tear and wear, obsolesce, usage, time period, etc. It is shown on the debit side of the income statement. It is a non-cash item that does not affect the cash balance.

The formula to compute the depreciation expense under the straight-line method is shown below:

= (Original cost - residual value) ÷ useful life

The original cost is the purchase value of the assets

The residual value is the salvage value at the end of its useful life

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3 years ago
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4 years ago
Which of the following organizations must comply with rules and regulations established by specific government agencies to enfor
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In their contract, Jordan (the homeowner) and Mel (the contractor) have stipulated that Mel will build Jordan a room addition wi
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<h3>What is the meaning of a breach of contract?</h3>

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6 0
2 years ago
What is one way to set up an opportunity for job shadowing?Contact people you know and request a shadowing experience.Show up on
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Answer:

A is the answer I just did the test and I remember from my notes writing it down

Explanation:

my notes

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