Wong Purchased a Computer for $15 000, Net of GST

question 12

Multiple Choice

Wong purchased a computer for $15 000, net of GST. Originally it had an estimated useful life of 4 years and a residual value of $3000. The straight-line method is used. At the start of the third year of usage Wong revised the life of the computer to a total life of 6 years. The residual value had not changed. What depreciation expense should be recorded for the computer for year 3?

• A) $1000
• B) $1500
• C) $3000
• D) $4000

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Definitions:

Boycott Limitations

Restrictions or regulations imposed on the ability to conduct or participate in a boycott to protest against certain policies or practices.

Arbitrator Uncertainty

Arbitrator uncertainty involves the unpredictable outcomes or decisions that an arbitrator may make in resolving disputes, due to the discretionary power they possess.

Negotiated Agreement

A contract or settlement reached through discussion and compromise between two or more parties, often in a labor context.

Writers Guild

An organization that represents the interests of writers in the film, television, and radio industries, negotiating rights and contracts on their behalf.