A Company Purchases for $24,000 an Asset That Has a Useful

question 211

Multiple Choice

A company purchases for $24,000 an asset that has a useful life of six years and no salvage value.After two years,the company spends $4,000 for a major overhaul that will extend the machine's useful life four years beyond the original six.Assuming straight-line depreciation,how much depreciation should be taken in year 3?

• A) $2,800
• B) $2,500
• C) $2,000
• D) $4,000

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Definitions:

Labor Demand

The amount of work that employers are ready to employ at a specified rate of pay.

Employment Decline

A situation where the number of employed individuals in an economy decreases, often due to economic downturns, technological changes, or structural shifts in the economy.

Labor Demand Curve

A graphical representation that shows the quantity of labor that employers are willing to hire at different wage rates.