Ryan Co Purchased a Computer for $15 000

question 8

Multiple Choice

Ryan Co purchased a computer for $15 000. Originally it had an estimated useful life of 4 years and a residual value of $3000, but on the first day of the 4th year of life the estimated useful life was extended by a further two years and the residual value was reduced to zero. Ryan Co uses the straight-line method to depreciate its computer equipment. At the end of year 4, how much depreciation should be recorded for the computer?

• A) $4000
• B) $3000
• C) $2000
• D) $5000

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Definitions:

Interstate Commerce

Trade, traffic, or transportation involving the movement of goods or services across state lines within the United States.

Tariffs

Taxes imposed by a government on imported or exported goods to protect domestic industries from foreign competition or to generate revenue.

Economic Decisions

The choices made by individuals, companies, or governments regarding the allocation of resources, investments, and policy formulations to influence the economy.

Ratification Debate

The intense discussion and argument that took place around the adoption of the United States Constitution by the states.