Canliss Mining Uses the Replacement Method to Determine Depreciation on Its

question 86

Multiple Choice

Canliss Mining uses the replacement method to determine depreciation on its office equipment.During 2014,its first year of operations,office equipment was purchased at a cost of $14,000.Useful life of the equipment averages four years and no salvage value is anticipated.In 2016,equipment costing $5,000 was sold for $600 and replaced with new equipment costing $6,000.Canliss would record 2016 depreciation of:

• A)$3,500.
• B)$4,400.
• C)$5,400.
• D)None of these answer choices are correct.

---

Definitions:

Balanced Strategic Planning

An approach to strategic planning that ensures all aspects of the business are considered and aligned with the organization's goals, including financial and non-financial elements.

Intangible Assets

Non-physical assets possessing value, such as intellectual property, brand reputation, and trademarks.

Marketing Plan

A comprehensive document outlining a company's marketing efforts, including strategies, target markets, and specific actions to reach marketing objectives.

Top Management

The highest level of management within an organization, responsible for setting strategies, goals, policies, and making major corporate decisions.