A Driver Started a Business on 1st of January 2018

question 43

Multiple Choice

A driver started a business on 1st of January 2018, hiring out his limousine for special occasions. Current regulations require the business to purchase a license that will expire after two years. The cost of the license is $16,000. Calculate the amount of license expense to be included in the income statement for the 6 months ended 30 June 2018.

• A)$6,000.
• B)$4,000.
• C)$3,000.
• D)$12,000.

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Definitions:

Phosphoglyceraldehyde

A three-carbon sugar phosphate molecule that plays an important role in several biochemical pathways, including glycolysis and the Calvin cycle.

Photosynthetic Pathway

The series of chemical reactions in plants that convert carbon dioxide and water into glucose and oxygen, using sunlight as the energy source.

Carbon Sugar

Organic molecules consisting of carbon, hydrogen, and oxygen that form the building blocks of carbohydrates.

Calvin-Benson Cycle

A series of biochemical redox reactions taking place in the chloroplasts of photosynthetic organisms, crucial for converting carbon dioxide into glucose.