An Equipment Was Purchased for $30,000

question 57

Multiple Choice

An equipment was purchased for $30,000.It has a useful life of 5 years, and a residual value of $4,000.Compute the depreciation expense for the second year using the double-declining-balance method.

• A) $5,200
• B) $6,000
• C) $6,240
• D) $7,200

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Definitions:

Marginal Cost

The extra expense associated with the production of an additional single unit of a product or service.

Resource Allocation

The process of distributing available resources among various projects or business units to maximize the efficiency and performance of the organization.

Marginal Cost

The cost of producing one additional unit of a product, considering the costs of all resources involved.

Price Exceeds

A situation where the price of a good or service surpasses a certain threshold, often leading to economic implications such as reduced demand or market imbalance.