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A Company Purchased a Computer on July 1, 2015 for $50,000

Question 42

Multiple Choice

A company purchased a computer on July 1, 2015 for $50,000. Estimated useful life of the computer was 5 years and it has no residual value. Which of the following methods should be used to best match its expense against the revenue it produces?


A) the units-of-production method
B) the straight-line method
C) the double-declining-balance method
D) the first-in, first-out method

Correct Answer:

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