Computer Equipment Was Acquired at the Beginning of the Year

question 177

Multiple Choice

Computer equipment was acquired at the beginning of the year at a cost of $57,000 that has an estimated residual value of $9,000 and an estimated useful life of 5 years. Determine the second-year depreciation using the straight-line method.

• A) $13,200
• B) $19,200
• C) $9,600
• D) $9,000

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Definitions:

Goods

Goods are tangible products or items that can be sold or bought, providing satisfaction and value to the consumer, ranging from food items to electronic gadgets.

Cannibalization

When a company's new product eats into the sales of one of its existing products.

Disruptive Technology

An innovation that significantly alters the way consumers, industries, or businesses operate, often displacing established technologies.

Sales Volume

The quantity of products or services sold by a company within a specific period, often used to measure business performance.