Use the Information Below to Answer the Following Questions

question 20

Multiple Choice

Use the information below to answer the following questions:
On 1 January 2010, a new motor vehicle with a useful life of 4 years and an estimated trade-in value of $12 000 was purchased by a business for $54 000. The straight-line method is employed and the financial year ends on 31 December.
-What was the net book value at 31 December 2012?

• A) $42 000
• B) $22 500
• C) $12 500
• D) $43 500.

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Definitions:

Four-Firm Concentration Ratio

A measure of market concentration that calculates the combined market share of the four largest firms in an industry.

Total Sales

The aggregate revenue a business or sector generates from selling goods or services over a specific period.

Advertising Expenditures

The amount of money spent on promoting products, services or brands through various media channels.

Monopolistically Competitive

A monopolistically competitive market is characterized by many sellers offering products that are similar but not identical, allowing for competition on factors other than just price, such as quality, brand, or features.