What Is the Depreciation Expense for the Second Year (Straight-Line

question 83

Multiple Choice

What is the depreciation expense for the second year (straight-line method) using the following? $$\begin{array} { | l | c | } \hline \text { Cost of equipment } & \$ 14,000 \\\hline \text { Residual value } & \$ 500 \\\hline \text { Life } & 4 \text { years } \\\hline\end{array}$$

• A)$14,500
• B)$13,500
• C)$3,375
• D)$3,275
• E)None of these

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Definitions:

Market Equilibrium

The point at which the supply of goods matches demand, causing stable prices.

Incentives

Factors or rewards that motivate individuals or organizations to perform an action or behave in a certain way.

Incomes

The monetary payment received for goods or services, or from other sources like investments, typically measured over a set period of time.

Spend

The process of spending money to acquire goods or services.