A Company Purchased a POS Cash Register on January 1

question 46

Multiple Choice

A company purchased a POS cash register on January 1 for $5,400.This register has a useful life of 10 years and a salvage value of $400.What would be the depreciation expense for the second-year of its useful life using the double-declining-balance method?

• A)$500
• B)$800
• C)$864
• D)$1,000
• E)$1,080

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Definitions:

Existing Product

A good or service that is currently available in the market and known to consumers.

Customer Needs

Customer needs are the requirements and desires that customers expect a product or service to fulfill.

Operations

The day-to-day activities required for an organization to function effectively and achieve its objectives.

Output Goals

Objectives focused on the results or outcomes of a task, process, or project.