Schager Company Purchased a Computer System on January 1, 2014

question 116

Multiple Choice

Schager Company purchased a computer system on January 1, 2014, at a cash cost of $25,000. The estimated useful life is 10 years, and the estimated residual value is $3,000. The company will use the double declining-balance depreciation method. What is the accumulated depreciation balance as of December 31, 2015?

• A) $9,000.
• B) $4,000.
• C)$7,920.
• D)$8,520.

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Definitions:

Graph of Equation

A visual representation of all the points that satisfy a given equation, plotted on a coordinate grid.

Method of Substitution

A technique used to solve systems of equations by solving one equation for one variable and then substituting that expression into another equation.

System of Equations

A set of two or more equations with the same set of unknowns, which are solved together to find a common solution.

Method of Substitution

A technique used to solve systems of equations where one equation is solved for one variable, which is then substituted into other equations.