Watson Tax Planning Service Has the Following Plant Assets: Communications

question 12

Multiple Choice

Watson Tax Planning Service has the following plant assets: Communications Equipment: Cost,$7,200 with useful life of eight years; Furniture: Cost,$24,000 with useful life of 12 years; and Computer: Cost,$13,200 with useful life of four years.(Assume residual value of all the assets is zero.) Watson's monthly depreciation expense calculated using the straight-line method is ________.(Round any intermediate calculations and your final answer to the nearest cent.)

• A) $275.00
• B) $166.67
• C) $75.00
• D) $516.67

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Definitions:

Budget Constraint

A limit on the consumption choices of individuals or entities based on their income and the prices of goods and services, representing all possible combinations of goods and services that can be purchased.

Utility Function

A mathematical representation that ranks individuals' preferences over a set of goods and services to represent satisfaction levels.

Consumption Bundle

A combination of different goods and services that a consumer chooses to consume at a given time.

Marginal Utility

The additional satisfaction or benefit (utility) that a consumer derives from purchasing and consuming an additional unit of a good or service.