Canliss Mining Uses the Retirement Method to Determine Depreciation on Its

question 30

Multiple Choice

Canliss Mining uses the retirement method to determine depreciation on its office equipment. During 2007, its first year of operations, office equipment was purchased at a cost of $14,000. Useful life of the equipment averages 4 years and no salvage value is anticipated. In 2009, equipment costing $5,000 was sold for $600 and replaced with new equipment costing $6,000. Canliss would record 2009 depreciation of:

• A)$3,500.
• B)$4,400.
• C)$5,400.
• D)None of these.Cost of equipment sold of $5,000 less proceeds of $600 = $4,400.

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Definitions:

Strategic Communications

The practice of planning and delivering targeted messages to achieve specific organizational objectives.

Tactical Management

Short-term focused strategies and operational decisions aimed at addressing immediate challenges and exploiting short-lived opportunities.

Operational Management

The area of management concerned with designing, overseeing, and improving production and business operations in the creation of goods or services.

Public Relations

The strategic communication process that builds mutually beneficial relationships between organizations and their publics.