Lexis Company Purchased Equipment on January 1,2012 for $35,500

question 129

Multiple Choice

Lexis Company purchased equipment on January 1,2012 for $35,500.The estimated useful life of the equipment was 7 years and the estimated residual value was $4,000.After using the straight-line method of depreciation for 3 years,the estimated useful life was revised to 9 years on January 1,2015.How much is depreciation expense for 2015?

• A) $2,444
• B) $3,000
• C) $2,000
• D) $3,667

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Definitions:

Power Distance Cultures

Cultures where there is acceptance of unequal distribution of power in institutions and organizations.

Insubordination

The act of deliberately disobeying or refusing to follow the orders or directions of a superior authority within an organizational context.

Face-Saving

Actions or strategies aimed at preserving one's dignity or reputation in the face of potential embarrassment or shame.

In-Group

A social group to which an individual identifies as being a member, often characterized by a sense of belonging and identity.