A Company Purchased Factory Equipment on April 1, 2010 for $64,000

question 245

Multiple Choice

A company purchased factory equipment on April 1, 2010 for $64,000. It is estimated that the equipment will have an $8,000 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) $6,400.
• B) $5,600.
• C) $4,200.
• D) $4,800.

---

Definitions:

Marginal Utility

The additional satisfaction or benefit received from consuming one more unit of a good or service.

Movie Rental

The practice of paying a fee to borrow a film for a limited period, traditionally through physical stores, or digitally via online platforms.

Choice Set

The collection of all possible options available to a consumer when making a decision.

Price Decreases

A reduction in the selling price of goods or services.