Galway Plc Purchased a Computer for €6000,2 Years Ago

question 30

Multiple Choice

Galway Plc purchased a computer for €6000,2 years ago.At the beginning of this year the motherboard was replaced to maintain its existing service capacity at a cost of €2000.The improvement to the computer will work only on the existing computer and it does not extend its useful service potential.Galway has been depreciating the equipment using the declining-balance method at a rate of 33%.What is the depreciation charge calculated at the end of the current year (rounded to the nearest euro) ?

• A)€1778
• B)€1549
• C)€2640
• D)€889

---

Definitions:

Indifference Curves

A graph showing combination of two goods that provide equal satisfaction and utility to an individual.

Bundle

A bundled package consisting of various products or services sold as one unit.

Preferences

In economics, a description of the needs or desires that consumers use to make choices among different goods or services.

Indifference Curves

Graphical representations used in microeconomics to show combinations of two goods that provide the same level of utility to a consumer.