A two year-old asset has a depreciable life of 10 years.Its initial purchase cost was $450,000 and it is depreciated by 10 percent annually.What is the remaining depreciable value of the asset?
A)$ 0.00
B)$90,000
C)$200,000
D)$360,000

Question

Quizplus · Accepted Answer

To find the remaining depreciable value of the asset, we need to first calculate the total accumulated depreciation. 
Each year, the asset depreciates by 10% of its initial cost, which is $45,000 ($450,000 x 0.10). So after two years, the total accumulated depreciation is:
$45,000 + $45,000 = $90,000.

The remaining depreciable value is simply the difference between the initial cost and the accumulated depreciation:
$450,000 - $90,000 = $360,000.

Therefore, the answer is D, $360,000.

A Two Year-Old Asset Has a Depreciable Life of 10