Equipment Was Purchased at a Cost of $20,000 at the Beginning

question 16

Multiple Choice

Equipment was purchased at a cost of $20,000 at the beginning of 2009. It has been depreciated at $2,000 per year over its ten-year estimated useful life. The company is preparing its 2013 financial statements (the net book value of the equipment is $12,000) ; management now estimates that the remaining useful life is three years and at the end of that time the residual value will be $3,000. Assuming that the company continues to use the straight-line method of depreciation, how much will be charged to depreciation expense in 2013?

• A) $2,000
• B) $3,000
• C) $4,000
• D) $5,667

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Definitions:

Perceived Behavioral Control

An individual's belief in their capability to execute behaviors necessary to produce specific performance attainments.

Behavioral Intention

A person's predisposition towards performing a certain action, influenced by personal attitudes and societal norms.

Theory of Planned Behavior

A psychological theory that predicts an individual's intention to engage in a behavior at a specific time and place, based on their attitude, subjective norms, and perceived behavioral control.

Attitude-Behavior Consistency

The extent to which an individual's behaviors or actions mirror their feelings and beliefs.