Copycat Copy Shop Bought Equipment for $ 16,000 on January

question 130

Multiple Choice

Copycat Copy Shop bought equipment for $ 16,000 on January 1, 2021. Copycat estimated the useful life to be 4 years with no residual value, and the straight-line method of depreciation will be used. On December 31, 2022, prior to recording depreciation for that year, Copycat decides that the business will use the equipment for a total of 5 years. What is the depreciation expense for 2022?

• A) $ 6,000
• B) $ 2,400
• C) $ 3,000
• D) $ 4,500

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Definitions:

Hold-in Windings

Windings in an electromagnetic device that maintain a magnetic field to keep a component, such as a relay or solenoid, in an activated state.

Cool Down Period

Cool down period refers to the time allowed for a machine, engine, or system to gradually return to ambient temperature after operation, to avoid stress or damage from abrupt temperature changes.

Cranking Time

The duration required to rotate an engine's crankshaft to start the engine.

Voltage Loss

The decrease in electrical potential within a circuit, usually resulting from the resistance or impedance present in its components.