Bombay Inc

question 38

Multiple Choice

Bombay Inc.bought new computers on January 1 for $18,000 to improve the quality of their animation.The computers have a useful life of 8 years but Bombay Inc.thinks that continuing technological developments will likely mean they will replace the computers after 4 years,at which time they will be worth $2,000.If they use straight-line depreciation,the depreciation expense for the first year will be

• A)$2,000.
• B)$2,250.
• C)$4,000.
• D)$4,500.

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Definitions:

Stress Management Strategy

A set of techniques and programs aimed at controlling a person's level of stress, especially chronic stress, to improve everyday functioning.

Physical-Fitness Program

A structured regimen or plan designed to improve an individual's physical health and performance.

Economies of Scale

Reductions in the average cost of a product due to increased production levels.

Diseconomies of Scale

An increase in production costs as the scale of production goes up, leading to reduced efficiency.