Use the Following Information for Questions

question 34

Multiple Choice

Use the following information for questions:
On January 1, 2011, Mary Co.purchased some equipment that cost $52,800.Freight costs were $300, sales taxes were $6,400, and installation $500.Estimated residual value is $2,000.The company uses a straight-line rate of 10%.
-Amortization expense for 2011 was:

• A)$6,130
• B)$5,900
• C)$5,800
• D)$5,930

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Definitions:

Monetary Policies

Economic strategies and decisions by a government or central bank to control the money supply and interest rates in an economy.

Conservative Economists

Economists who prioritize free market principles, limited government intervention, and fiscal conservatism in their analysis and policy recommendations.

Rational Expectations Theorists

Economists who postulate that individuals make decisions based on their rational outlook, available information, and past experiences.

New Classical Economists

Economists who believe in the theory that markets are always clear and that participants have rational expectations, focusing on the supply side for economic growth.