The Following Extract Was Taken from the Worksheet of Kelly

question 48

Multiple Choice

The following extract was taken from the worksheet of Kelly Bakers for the year 2014. For the above information, determine the amount of Depreciation Expense for the equipment used in the business.

• A) $9,000
• B) $3,000
• C) $4,000
• D) $1,500

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Definitions:

Treasury Stock

Equity that was once distributed to the public and later purchased again by the issuer, diminishing the total shares in circulation.

Paid-in Capital

Refers to the funds raised by a company through the sale of its shares to investors, representing the capital that shareholders have invested directly into the company.

Treasury Stock

Refers to shares that were once part of the outstanding shares but were bought back by the company and are now held in the company's treasury.

Par Value

A nominal value assigned to a share of stock by the company's corporate charter, unrelated to the market value.