An equipment costs $12,000 and can be sold at the end of 5 years for $300. What is the depreciation for year 3 if the sum of years’ digits depreciation method was used? (THIS IS ECONOMCS QUESTION DONT SKIP UNDER ANY OTHER SUBJECT) OTHERWISE WILL DOWNVOTE a. $2,340 b. $2,000 c. $3,200 d. $1,656

An equipment costs $12,000 and can be sold at the end of 5 years for $300. What is the depreciation for year 3 if the sum of years’ digits depreciation method was used? (THIS IS ECONOMCS QUESTION DONT SKIP UNDER ANY OTHER SUBJECT) OTHERWISE WILL DOWNVOTE a. $2,340 b. $2,000 c. $3,200 d. $1,656

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

An equipment costs $12,000 and can be sold at the end of 5 years for $300. What is the depreciation for year 3 if the sum of years’ digits depreciation method was used?

(THIS IS ECONOMCS QUESTION DONT SKIP UNDER ANY OTHER SUBJECT) OTHERWISE WILL DOWNVOTE

a. $2,340

b. $2,000

c. $3,200

d. $1,656

Definition Video Definition Accounting method wherein the cost of a tangible asset is spread over the asset's useful life. Depreciation usually denotes how much of the asset's value has been used up and is usually considered an operating expense. Depreciation occurs through normal wear and tear, obsolescence, accidents, etc. Video

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