On April 12,2015,Suzanne Bought a Computer for $20,000 for Business

question 25

Multiple Choice

On April 12,2015,Suzanne bought a computer for $20,000 for business use.This was the only purchase for that year.Suzanne used the most accelerated depreciation method available but did not elect Sec.179.Bonus depreciation was not available.Suzanne sells the machine in 2016.The depreciation on the computer for 2016 is

• A)$2,000.
• B)$3,200.
• C)$4,000.
• D)$6,400.

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Definitions:

Financial Statement

An organized log of economic actions and the financial situation of a firm, an individual, or any other unit.

Permanent/Temporary

Pertaining to accounts in accounting where permanent accounts are balance sheet accounts that carry over balances into the next financial period, and temporary accounts are reset or closed to equity through retained earnings at the end of a period.

Normal Balance

The side of an account (debit or credit) where increases in the account are recorded, reflecting the nature of the account.

Financial Statement

A formal record of the financial activities and position of a business, person, or other entity, typically including income statement, balance sheet, and cash flow statement.