Use the Information Below for Flora Inc

question 112

Multiple Choice

Use the information below for Flora Inc. for 2015 and 2016 to answer the following question. During 2016, Flora Inc. sold equipment with a cost of $30,000 and accumulated depreciation of $25,000. A gain of
$3,000 was recognized on the sale of the equipment This was the only equipment sale during the year.
What was depreciation expense for 2016?

• A) $ 9,000
• B) $16,000
• C) $21,000
• D) $30,000

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Definitions:

Diminishing Marginal Utility

Diminishing Marginal Utility is an economic concept stating that as a person consumes more of a good or service, the satisfaction (utility) gained from consuming each additional unit decreases.

Total Utility

The total satisfaction or benefit that a person receives from consuming a given total quantity of a good or service.

Budget Constraint

The limitations on the consumption bundles that a consumer can afford with a limited budget at given prices.

Utility

In economics, a measure of satisfaction or enjoyment obtained from consuming goods and services.