A Plant Asset Was Purchased on 1 January for $30,000

Multiple Choice

A plant asset was purchased on 1 January for $30,000 with an estimated residual value of $6,000 at the end of its useful life. The current year's depreciation expense is $3,000 calculated on the straight-line basis and the balance of the Accumulated depreciation account at the end of the year is $15,000. The remaining useful life of the plant asset is:

A) 10 years.
B) 8 years.
C) 5 years.
D) 3 years.