Use the Following Information for Questions

question 94

Multiple Choice

Use the following information for questions.
On January 1, 2018, Anvil Corp. purchased equipment for $60,000. It was expected to last 5 years, after which it will be sold for $5,000. It is expected to be used for a total of 10,000 machine hours, and was used for 750 hours during the year ended December 31, 2018.
-The depreciation expense for 2018 using the straight-line method will be

• A) $4,125.
• B) $11,000.
• C) $12,000.
• D) $12,250.

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Definitions:

Short-run Phillips Curve

A graphical representation showing the inverse relationship between the rate of inflation and the rate of unemployment in an economy over a short period.

Favorable Supply Shock

An unexpected event that increases the availability of a good or service, thus lowering its price and benefiting consumers.

Inflation

The measure of how quickly the general pricing for products and services advances, decreasing monetary purchasing power.

Unemployment Rate

The ratio of individuals without employment, yet are actively pursuing job opportunities in the labor force.