Fabian Woodworks This Company Purchased a Truck at a Cost of $12,000

question 130

Multiple Choice

Fabian Woodworks
This company purchased a truck at a cost of $12,000. The truck has an estimated residual value of $2,000 and an estimated life of five years, or 100,000 hours of operation. The truck was purchased on January 1, Year 1, and was used for 27,000 hours in Year 1 and 26,000 hours in Year 2.
-Refer to the figure Fabian Woodworks.If the company uses the straight-line method of depreciation,what is the book value on December 31,Year 2?

• A) $4,000
• B) $6,000
• C) $8,000
• D) $10,000

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Definitions:

Prejudice

A preconceived opinion or bias against individuals or groups without just grounds or sufficient knowledge.

Negative Attitude

A general disposition of disfavor or opposition towards a specific object, concept, or person.

Discrimination

Unfair or prejudiced treatment of individuals based on characteristics such as race, gender, age, or sexual orientation.

Stereotype

A simplified and fixed image or idea of a particular type of person or thing, commonly held in a manner that dismisses individual differences.