A Company Purchased New Computers at a Cost of $14,000

question 37

Multiple Choice

A company purchased new computers at a cost of $14,000 on September 30.The computers are estimated to have a useful life of 4 years and a salvage value of $2,000.The company uses the straight-line method of depreciation.How much depreciation expense will be recorded for the computers for the first year ended December 31?

• A)$250
• B)$750
• C)$875
• D)$1,000
• E)$3,000

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Definitions:

Households in Michigan

The units of living quarters where the occupants live together, located within the geographical limits of Michigan.

Box and Whisker Plot

A graphical method to depict groups of numerical data through their quartiles, highlighting the median and variability of the data set.

Percentiles

Measures that divide a dataset into 100 equal parts, each portion representing 1% of the dataset, to indicate distribution.

Standard Deviation

A framework for quantifying how much a collection of data points varies or spreads.