Bombay Inc

question 38

Multiple Choice

Bombay Inc.bought new computers on January 1 for $18,000 to improve the quality of their animation.The computers have a useful life of 8 years but Bombay Inc.thinks that continuing technological developments will likely mean they will replace the computers after 4 years,at which time they will be worth $2,000.If they use straight-line depreciation,the depreciation expense for the first year will be

• A)$2,000.
• B)$2,250.
• C)$4,000.
• D)$4,500.

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Definitions:

Promotions

A process in which an employee is moved to a higher position within the company, typically involving increased responsibilities and pay.

Reliable

Pertaining to the consistency and dependability of something or someone, particularly in performing functions or yielding results.

Consistent

indicates uniformity in actions or outcomes over a period of time, often used to describe reliability and predictability in performance or results.

Criterion Contamination

This occurs when a performance appraisal contains factors unrelated to actual job performance, potentially skewing the evaluation.