Use the Following Information for Questions

question 6

Multiple Choice

Use the following information for questions.
In January 2012, Marcus Ltd.has installation costs of £9,000 on new machinery that were charged to Repair Expense.Other costs of this machinery of £30,000 were correctly recorded and have been depreciated using the straight-line method with an estimated life of 10 years and no residual value.At December 31,2012, Marcus decides that the machinery ha a remaining useful life of 15 years, starting with January 1,2012
-If the book have not been closed for 2012 and depreciation expense has not yet been recorded for 2012, the entry that marcus makes in 2012 to record depreciation on the machinery acquired in January, 2011, will include:

• A)a debit to Depreciation Expense for £2,600
• B)a credit to Accumulated Depreciation for £900.
• C)a debit to Depreciation Expense for £3,900
• D)a credit to Depreciation Expense for £2,340

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Definitions:

Trial

A method used in marketing to allow potential customers to try a product or service for a limited time to assess its value or effectiveness.

Promotion-to-Sales Ratio

A metric analyzing the effectiveness of promotional activities by comparing the cost of promotion to the generated sales revenue.

Competitive Parity

A marketing strategy where a company matches the benefits or price points of its competitors to maintain or achieve competitive advantage.

Percentage of Sales

A financial metric that shows how much of a company's sales are generated over a period, often used to allocate marketing budget.