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

question 15

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 residual 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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