Net Income for Trent Company for 2011 Includes the Effect

question 44

Multiple Choice

Net income for Trent Company for 2011 includes the effect of the following transactions involving the sale of fixed assets:

Purchases of fixed assets during 2011 amounted to $340,000. The Accumulated Depreciation account increased $40,000 during 2011. How much was depreciation expense for 2011?

• A) $217,000
• B) $270,000
• C) $40,000
• D) $32,000

---

Definitions:

Benefits

Advantages or monetary assistance received from employment, government, or insurance.

Economic Thinking

The process of evaluating decisions based on costs, benefits, and the impact on resource allocation.

Human Action

The study of human behaviour, particularly in the context of individuals' decisions and actions in the economy.

Rational Choice

A theory in economics and sociology that suggests individuals always make prudent and logical decisions that provide them with the highest amount of personal utility.