A Company Purchased a Computer on 1 July 2016

question 49

Multiple Choice

A company purchased a computer on 1 July 2016.The computer has an estimated useful life of 5 years and will have no residual value.It was purchased for $10 000.It is estimated that the computer can be used for 5 000 hours.The computer was used for 450 hours during 2016.If the goal is to record higher depreciation expense in the earlier years,which method should be used?

• A)Units of production
• B)Straight line
• C)First-in,first-out
• D)Reducing balance

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Definitions:

Recall

The mental process of retrieval of information from the past.

Zone of Proximal Development

A concept in educational psychology referring to the difference between what a learner can do without help and what they can achieve with guidance and encouragement from a skilled partner.

Skilled Partner

A competent individual in a relationship or teamwork setting, proficient in contributing effectively to mutual goals.

Guided Participation

Also known as apprenticeship in thinking; the process by which people learn from others who guide them, providing a scaffold to help them accomplish more than the child could do alone.