Paul Bought a Computer for $15,000 for Business Use on March

question 62

Multiple Choice

Paul bought a computer for $15,000 for business use on March 18,2011.This was his only purchase for that year.Paul used the most accelerated depreciation method available,but did not elect Sec.179.Bonus depreciation was not available.Paul sells the machine in 2013.The depreciation on the computer for 2013 is

• A)$0.
• B)$1,440.
• C)$1,500.
• D)$2,880.

Understand the principles and applications of the perpetual and periodic inventory systems.

Recognize the impact of inventory management methods on financial statements and tax liabilities.

Determine the cost of inventory purchases and the effect of payment terms on inventory cost recording.

Identify the proper inclusion or exclusion of goods in transit, consigned goods, and goods out on consignment in inventories.

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Definitions:

Discrete Probability

The mathematical study of probability where the outcome is determined from a set of distinct, separate values.

Queuing Theory

A body of knowledge about waiting lines.

Little's Law

A principle in queuing theory stating that the long-term average number of customers in a stable system L is equal to the long-term average effective arrival rate, λ, multiplied by the average time a customer spends in the system, W (L = λW).

Poisson Distribution

The Poisson Distribution is a statistical distribution that expresses the probability of a given number of events occurring in a fixed interval of time or space if these events occur with a known constant mean rate and independently of the time since the last event.