A Company Purchased Factory Equipment on June 1, 2010, for $48,000

question 291

Multiple Choice

A company purchased factory equipment on June 1, 2010, for $48,000. It is estimated that the equipment will have a $3,000 salvage value at the end of its 10-year useful life. Using the straight-line method of depreciation, the amount to be recorded as depreciation expense at December 31, 2010, is

• A) $4,500.
• B) $2,625.
• C) $2,250.
• D) $1,875.

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Definitions:

Self-Fulfilling Prophecy

A prediction that directly or indirectly causes itself to become true due to positive feedback between belief and behavior.

Non-Verbal Cues

Forms of communication without words, such as gestures, facial expressions, posture, and tone of voice, which can convey a wide range of messages.

Self-Fulfilling Prophecy

A psychological phenomenon whereby an individual's or group's belief or expectation brings about its own realization, influencing their behavior to make the prediction come true.

Organizational Effectiveness

Organizational effectiveness is the extent to which an organization achieves its goals and meets the needs of its stakeholders through efficient use of resources.