On January 1,Year 1,Parker Company Purchased an Asset Costing $20,000

question 64

Multiple Choice

On January 1,Year 1,Parker Company purchased an asset costing $20,000.The asset had an expected five-year life and a $2,000 salvage value.The company uses the straight-line method.What are the amounts of depreciation expense and accumulated depreciation,respectively,that will be reported in the Year 2 financial statements?

• A)$3,600 and $3,600
• B)$3,600 and $7,200
• C)$4,000 and $12,800
• D)$4,000 and $7,200

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Definitions:

Minimum Labor Standards

The baseline requirements set by legislation that determine minimum wage, working hours, safety, and other working conditions.

Productivity

The efficiency at which individuals, companies, or economies produce goods or services, often measured as output per unit of input.

Workers' Compensation Rates

The cost charged to employers for workers' compensation insurance, varying based on job risk levels and company safety records.

Medical and Insurance Costs

Expenses related to health care services, procedures, and health insurance premiums, which are a significant concern for individuals, families, and employers.