Use the information below to answer the following questions.
Fact 4.1.1
At the beginning of 2017, Peter's Perfectly Prickly Piercing Parlour had $5,000 worth of bellybutton and eyebrow rings on han computers each worth $1,000), 1 cash register worth $100, electrical equipment worth $500, and one piercing needle worth $5 the end of 2017, they had $5,000 worth of bellybutton and eyebrow rings, a new high speed computer worth $3,000 they had out the old ones), the same cash register, which was now worthless, electrical equipment worth $600, and they had upgraded the needle at a cost of $700 which was valued at $1,000.
-Refer to Fact 4.1.1.Peter's depreciation in 2017 is

Question

Quizplus · Accepted Answer

Depreciation is the decrease in value of an asset over time. In 2017, Peter's Perfectly Prickly Piercing Parlour upgraded its computer system and its piercing needle. The value of the old computer system and the old needle decreased, resulting in depreciation.

The old computer system had a value of $2,000 ($1,000 for each computer). The new computer system had a value of $3,000. Therefore, the depreciation of the old computer system was $2,000 - $0 = $2,000.

The old needle had a value of $5. The upgraded needle had a value of $1,000 but cost $700 to upgrade. Therefore, the depreciation of the old needle was $5 - $0 = $5.

The total depreciation of Peter's Perfectly Prickly Piercing Parlour in 2017 was $2,000 + $5 = $2,005, which is closest to answer choice D: $2,300.

Use the Information Below to Answer the Following Questions