Solve the Problem. -Tech Support Associates Purchased a New Computer Network Server and Network

question 28

Multiple Choice

Solve the problem.
-Tech Support Associates purchased a new computer network server and replaced all its terminals
For $29,600. Its estimated life is 4 years, at which time it will have a scrap value of $2,100. Use the
Straight-line method of depreciation to find the annual amount of depreciation. Find the book
Value at the end of 3 years.

• A)$7,400, $7,400
• B)$6,875, $20,625
• C)$6,875, $8,975
• D)$7,400, $22,200

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Definitions:

Liquid Accounts

Refers to financial accounts which hold assets that can be readily converted into cash, often with little to no loss in value, such as savings accounts or money market accounts.

Profitability Ratios

Financial metrics used to evaluate a company's ability to generate profit relative to its revenue, assets, equity, or other financial metrics.

Net Income

The total profit of a company after all expenses and taxes have been deducted from total revenues; also known as net earnings or net profit.

Equity

Represents the shareholder's ownership interest in a company, calculated as the difference between total assets and total liabilities.