Use the Following Information for Questions

question 22

Multiple Choice

Use the following information for questions
On January 1, 2022, Flowers Unlimited purchased a new delivery van.The van cost $35,000 with an estimated life of 5 years and $5,000 residual value.Double diminishing-balance depreciation will be used.
-What is the depreciation expense for calendar 2022?

• A)$ 3,000
• B)$ 6,000
• C)$12,000
• D)$14,000

Grasp the relationship between bondholders and the issuing corporation, including the hierarchy of claims.

Understand the methods for amortizing bond discounts and premiums, including the straight-line and effective interest rate methods.

Recognize the different types of bonds (convertible, callable) and their specific features.

Understand how amortization of bond premium or discount affects interest expense.

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Definitions:

Virtual Teams

Groups of people who work together from different geographical locations, connected by technology such as email, videoconference, and collaborative software.

Reliable

Worthy of trust; consistently good in quality or performance; able to be depended on.

Curse Of Knowledge Effect

A cognitive bias that occurs when someone, knowing something, cannot remember or imagine not knowing it, leading to communication challenges.

Negative Emotion

A feeling that is generally considered to be unpleasant or detrimental, such as sadness, anger, or fear.