A Company Used Straight-Line Depreciation for an Item of Equipment

question 114

Multiple Choice

A company used straight-line depreciation for an item of equipment that cost $12,000,had a salvage value of $2,000,and had a five-year useful life.After depreciating the asset for three complete years,the salvage value was reduced to $1,200 and its total useful life was increased from 5 years to 6 years.Determine the amount of depreciation to be charged against the machine during each of the remaining years of its useful life:

• A)$1,000.
• B)$1,800.
• C)$1,467.
• D)$1,600.
• E)$2,160.

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Definitions:

Fiedler's Contingency Theory

A leadership model proposing that effective leadership is dependent on the match between a leader's style and the demands of the situation.

Path-Goal Theory

A leadership theory that suggests a leader's behavior is contingent to the satisfaction, motivation, and performance of their subordinates, and that it should align with the employees' goals.

Leadership Style

The approach and technique adopted by a leader to guide, influence, and lead a group towards achieving its goals.

Achievement-Oriented Leadership

A leadership style focused on setting challenging goals and seeking continuous improvement in team performance.