If a Company Buys a Machine for £12,000 with an Estimated

question 9

Multiple Choice

If a company buys a machine for £12,000 with an estimated useful life of 4 years and a residual value of £4,000,what is the annual depreciation charge if calculated on a straight line basis?

• A) £2,000
• B) £4,000
• C) £1,000
• D) £3,000

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Definitions:

Scientific Evidence

Information, data, or findings obtained through systematic observation, experimentation, or research that serves as a basis for making conclusions or judgments in science.

Social Interest

Involves the inclination of individuals to seek social connections, the welfare of others, and the desire to contribute to society.

Adler

Refers to Alfred Adler, an Austrian medical doctor and psychotherapist, known for founding the school of individual psychology which emphasizes the importance of feelings of inferiority and the creative self.

Overcompensate

To make up for deficiencies in one area by excelling or exaggerating in another.