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

question 79

Multiple Choice

Paul bought a computer for $15,000 for business use on March 18,2012.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 2014.The depreciation on the computer for 2014 is

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

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Definitions:

Real Wage

Adjusted for inflation, it represents the purchasing power of the wage rate.

Profit-Maximizing Firm

A company that operates in such a way as to maximize its profits by adjusting output levels based on market conditions.

Marginal Revenue Product

Refers to the additional revenue generated from employing one more unit of a resource or factor of production.

Marginal Resource Cost

The additional cost incurred by acquiring or using one more unit of a resource.