Caricature's Inc

question 14

Multiple Choice

Caricature's 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 Caricature's Inc.thinks that continuing technology 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 amortization the amortization expense for the first year will be:

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

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Definitions:

Primary Circular Reaction

An early developmental stage where infants repeat an action that they accidentally discovered, focusing on their own body.

Tertiary Circular Reaction

A stage in Piaget's theory of cognitive development during which toddlers experiment with new behaviors to see the outcomes, typically observed around 12 to 18 months of age.

Invention

The creation of a new device, method, or process, developed from study and experimentation.

Scheme Assimilation

The cognitive process by which new information is absorbed into existing mental frameworks or schemas.