Lunar Products Purchased a Computer for $13,000 on July 1,2016

question 71

Multiple Choice

Lunar Products purchased a computer for $13,000 on July 1,2016.The company intends to depreciate it over 4 years using the double-declining balance method.Residual value is $1,000.What is depreciation for 2017?

• A)$3,000
• B)$3,250
• C)$4,500
• D)$4,875

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Definitions:

Probability Distribution

A statistical descriptor that comprehensively outlines all viable outcomes and their likelihoods for a random variable within a set boundary.

Expected Holding-Period Return

The total return anticipated on a bond if it is held until the end of its lifetime or holding period, including interest payments and capital gain or loss.

Probability Distribution

An analytical function that describes every probable value and its likelihood for a random variable over a predefined interval.

Stock of the Economy

The stock of the economy refers to the total value of all assets and investments available within an economy at a given time.