At What Amount Should the Equipment (Net of Depreciation) Be

question 86

Multiple Choice

At what amount should the equipment (net of depreciation) be included in the consolidated balance sheet dated December 31, 2017?

• A) $105,000.
• B) $100,000.
• C) $ 95,000.
• D) $ 80,000.
• E) $ 85,000.

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Definitions:

Common Resource

A type of good that is rivalrous but non-excludable, meaning its use by one individual diminishes its availability for others, but no one can be effectively excluded from using it.

Overuse

Utilization of a resource or service to an extent that exceeds its sustainable capacity.

Nonrival

A property of certain goods where one person's consumption does not diminish the availability of the good for others.

Excludable

A property of a good or service wherein it is possible to prevent people who have not paid for it from having access to it.