Avery Sales Purchased Telecom Equipment for $5,000 on July 1,2013

question 124

Multiple Choice

Avery Sales purchased telecom equipment for $5,000 on July 1,2013.It has estimated residual value of $200,and an estimated life of 8 years.If Avery uses straight-line depreciation,how much expense will be recorded in 2013?

• A) $312
• B) $300
• C) $600
• D) $625

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Definitions:

Output

The total amount of goods or services produced by a firm, industry, or economy within a specific period.

Fixed Cost

A cost that does not change with the level of output or production, such as rent or salaries.

Short Run

A period in economics during which at least one input, such as plant size, is fixed and cannot be changed.

Physical Capital

Tangible assets such as buildings, machinery, and equipment used in the production of goods and services.