Using the Straight-Line Method,depreciation Expense for 2013 and the Book

question 26

Multiple Choice

Using the straight-line method,depreciation expense for 2013 and the book value at December 31,2013 would be:

• A)$12,000 and $36,000.
• B)$12,000 and $31,000.
• C)$11,000 and $33,000.
• D)$11,000 and $38,000.Book value = $60,000 - ($11,000 x 2)= $38,000.

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Definitions:

Exculpatory Clause

A statement in a contract that frees one party (usually the drafter of the agreement) from all liability arising out of performance of the contract, generally based on factors such as consumer ignorance or a great deal of unexplained fine print that serve to deprive the less powerful party of a meaningful choice.

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The legal age at which an individual is considered capable of entering into contracts and other legal bindings, marking the transition into legal adulthood.

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A concept in law and ethics that allows for actions under exceptional circumstances, typically for immediate need or survival.

Restitution

The act of compensating for loss, damage, or injury caused, typically in legal contexts.