Schager Company Purchased a Computer System on January 1, 2016

question 88

Multiple Choice

Schager Company purchased a computer system on January 1, 2016, at a cash cost of $25,000. The estimated useful life is 10 years, and the estimated residual value is $3,000. The company will use the double declining-balance depreciation method. What is the accumulated depreciation balance as of December 31, 2017?

• A)$9,000.
• B)$4,000.
• C)$7,920.
• D)$8,520.

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Definitions:

Utility Software

Software designed to help analyze, configure, optimize or maintain a computer.

Animation Software

Computer programs used to create animated images and visual effects, utilized in film-making, video games, and other visual media.

Multimedia Software

Programs that include image-, video-, and audio-editing software, animation software, and other specialty software required to produce computer games, animations, and movies.

Copyleft

A licensing concept in which an author makes a work freely available for others to copy, distribute, and modify, requiring all modified versions to be free as well.