Ryan Co Purchased a Computer for $15 000

question 8

Multiple Choice

Ryan Co purchased a computer for $15 000. Originally it had an estimated useful life of 4 years and a residual value of $3000, but on the first day of the 4th year of life the estimated useful life was extended by a further two years and the residual value was reduced to zero. Ryan Co uses the straight-line method to depreciate its computer equipment. At the end of year 4, how much depreciation should be recorded for the computer?

• A) $4000
• B) $3000
• C) $2000
• D) $5000

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Definitions:

Keynesian Economist

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