Morgan's Consulting Bought a Scanner Worth $5,000 with an Expected

question 186

Multiple Choice

Morgan's Consulting bought a scanner worth $5,000 with an expected life of 7 years and a residual value of $1,500. What is the adjusting journal entry for the first year?

• A) Scanner 500 Depreciation Expense 500
• B) Scanner 500 Accumulated Depreciation, Computer 500
• C) Depreciation Expense 500 Scanner 500
• D) Depreciation Expense 500 Accumulated Depreciation, Scanner 500

---

Definitions:

Long Run

A period of time in economics sufficient for all markets to adjust, including changes in production capacity and market entry or exit.

Short Run

In economics, a period in which at least one input is fixed and cannot be changed by the firm.

Firm's Output

The total quantity of goods or services produced by a company within a specific period.

Short Run

Refers to a time period in which at least one input (e.g., capital) is fixed, limiting the ability of a business to adjust to changes in market demand or production costs.