Use the Following Information for Questions 61 and 62 -Depreciation Expense for 2015 Was
A) $462,000

question 94

Multiple Choice

Use the following information for questions 61 and 62.
Equipment that cost $525,000 and had a book value of $234,000 was sold for $270,000. Data from the comparative balance sheets are: $\begin{array}{lrr}&12 / 31 / 15&12 / 31 / 14\\\text { Equipment } & \$ 3,240,000 & \$ 2,925,000 \\\text { Accumulated Depreciation } & 990,000 & 855,000\end{array}$
-Depreciation expense for 2015 was

• A) $462,000.
• B) $426,000.
• C) $81,000.
• D) $54,000.

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Definitions:

Perfectly Competitive Industry

An industry structure characterized by many small firms, homogeneous products, and free entry and exit, leading to price-taking behavior.

AC

Short for Alternating Current, a type of electrical current in which the flow of electric charge periodically reverses direction.

Monopoly

A single-seller market scenario, in which the product offered is unique and lacks any near equivalents in the marketplace.

Barriers To Entry

Barriers to entry are obstacles that make it difficult for new competitors to enter a market, which can include high startup costs, strict regulations, or strong brand loyalty among consumers.