Avery Sales Purchased Telecom Equipment for $12,000 on October 1,2013

question 20

Multiple Choice

Avery Sales purchased telecom equipment for $12,000 on October 1,2013.It has estimated residual value of $1,800,and an estimated life of 8 years.If Avery uses double-declining-balance depreciation,how much expense will be recorded in 2013?

• A) $312
• B) $375
• C) $250
• D) $750

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Definitions:

Raw Materials

Basic materials and substances used in the initial stages of production or manufacturing.

Manufacturing Activities

Processes and operations involved in converting raw materials into finished goods, including assembly, fabrication, and machining.

Finished Goods Inventory

The stock of completed products that are ready to be sold but have not yet been purchased or distributed to customers.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including the cost of materials and labor.