The Price of a Desktop Computer Purchased by Alpha Electronics

question 10

Multiple Choice

The price of a desktop computer purchased by Alpha Electronics was $5,034. It cost $189 for delivery and $256 for installation. The salvage value at the end of a 5-year life is $424. Using the sum-of-the-years' digits depreciation, calculate the annual depreciation for year 4.

• A) $337
• B) $582
• C) $596
• D) $674

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Definitions:

Purchasing Power

The value of a currency expressed in terms of the amount of goods or services that one unit of money can buy.

Gross Domestic Product

The total value of all goods and services produced within a country's borders in a specific time period.

Currency Fluctuation

The variation in the exchange rate of one currency relative to another over time, influenced by economic factors, market demand, and geopolitical events.

Trade Restrictions

Government-imposed regulations that limit the free import and export of goods between countries, often to protect domestic industries.