NG Ltd Purchased a Sprinkler System on 1 January,the Start

question 21

Multiple Choice

NG Ltd purchased a sprinkler system on 1 January,the start of Year 1. $$\begin{array} { l c } \text { Cost (net of GST) } & \$ 6500 \\\text { Residual } & \$ 1500 \\\text { Estimated Useful Life } & 5 \text { years }\end{array}$$ Under the straight-line method depreciation expense for year 2 will be:

• A)$1300
• B)$1000
• C)$1500
• D)$1250

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Definitions:

Specialization And Trade

An economic strategy where individuals or nations focus on the production of certain goods or services where they have a comparative advantage, leading to increased efficiency and trade benefits.

Total Output

The total quantity of goods and services produced in an economy at a given time period.

Economies Of Scale

Cost advantages reaped by companies when production becomes efficient, leading to a decrease in the per unit cost as output increases.

Trade Sector

The segment of the economy that involves the exchange of goods and services across borders.