Pentec Ltd Has Just Acquired Five New Computers for $29

question 36

Multiple Choice

Pentec Ltd has just acquired five new computers for $29 000 in total,and paid a further $1000 to have additional zip drives added.The computers are expected to have a useful life of 5 years and their salvage value is expected to be $3000.Pentec Ltd has decided to apply the declining balance method of calculating depreciation.What is the first 2 years depreciation charge on the computers?

• A) Year 1: $3000, Year 2: $2700
• B) Year 1: $18 928.7, Year 2: $6985.5
• C) Year 1: $ 9964.2, Year 2: $6287
• D) Year 1: $11 071, Year 2: $6985.5

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Definitions:

Ethylene Glycol

A colorless, practically odorless, poisonous, and hygroscopic liquid with sweet taste, used as antifreeze in cooling and heating systems.

Acetal

An acetal is a functional group characterized by two ether-like oxygen atoms bonded to the same carbon atom, commonly formed from the reaction of an aldehyde and an alcohol.

Acetal

A carbon atom connected to an alkyl group, two -OR groups, and a hydrogen atom, typically formed from the reaction between an aldehyde and alcohol.

Ylide

A compound with opposite charges on adjacent atoms, typically consisting of a positively charged heteroatom adjacent to a negatively charged carbon.