Canliss Mining Uses the Retirement Method to Determine Depreciation on Its

question 145

Multiple Choice

Canliss Mining uses the retirement method to determine depreciation on its office equipment. During 2011, 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 2013, equipment costing $5,000 was sold for $600 and replaced with new equipment costing $6,000. Canliss would record 2013 depreciation of:

• A)$3,500.
• B)$4,400.
• C)$5,400.
• D)None of the above is correct.

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Definitions:

Sellers Receive

Refers to the revenue or payment that sellers get in exchange for providing goods or services in a market.

Tax

Mandatory financial contributions imposed by a government on individuals, corporations, or goods to fund public expenditures.

Tax Burden

The measure of the total amount of taxes imposed by government on individuals, corporations, goods, and services, affecting the income and purchasing power of taxpayers.