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:

Contributing Financially

Providing monetary resources or support to a project, individual, or organization.

Management

The act of organizing, planning, leading, and controlling resources efficiently and effectively to accomplish goals and objectives.

Positive Impact

Effects or outcomes that contribute beneficially to an individual, group, or environment.

Dissatisfied

Feeling of unhappiness or discontentment with something, often leading to a desire for change.