Using the Sum-Of-The Years'-Digits Method, Depreciation for 2010 and Book

question 83

Multiple Choice

Using the sum-of-the years'-digits method, depreciation for 2010 and book value at December 31, 2010, would be

• A)$13,500 and $13,500.
• B)$13,500 and $8,500.
• C)$12,000 and $17,000.
• D)$12,000 and $12,000.Depreciation in 2010 = ($45,000 5,000) 3/10 = $12,000 Book value, 12/31/10 = $45,000 16,000 12,000 = $17,000

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Definitions:

Tax

A mandatory financial charge or some other type of levy imposed on a taxpayer by a governmental organization in order to fund various public expenditures.

Consumer Surplus

The difference between the total amount that consumers are willing and able to pay for a good or service versus what they actually pay.

Deadweight Loss

An economic inefficiency arising when the balance for a product or service fails to be attained or is unattainable.

Tax

A necessary financial assessment or some other type of taxation levied upon a taxpayer by a government entity, intended to fund the expenditure of government and various allotments for public services.