A Company Purchased New Furniture at a Cost of $16,000

question 131

Multiple Choice

A company purchased new furniture at a cost of $16,000 on January 1.The furniture is estimated to have a useful life of 6 years and a $1,000 salvage value.The company uses the straight-line method of depreciation.What is the book value of the furniture on December 31 of the first year?

• A)$16,000
• B)$15,000
• C)$2,500
• D)$13,500
• E)$13,333

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Definitions:

Typology

A classification system based on types or categories, often used for understanding various phenomena or entities.

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Relating to or based upon the characteristics, beliefs, or attributes that define or constitute a person's unique identity.

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The shared belief in the capability of a group to achieve its goals and accomplish tasks together.

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Objectives that are achievable and relevant, taking into account current resources, limitations, and conditions.