Question

ripleft Resubmit Question 4 Homework Answered O Fairfax Company bought a piece of equipment on December 1, 2025 for $12,000. Fairfax expects the equipment to last four years and then be worthless. What is the depreciation expense and net carrying value Fairfax would show on its annual financial statements at December 31, 2026 for this asset? Select an answer and submit. For keyboard navigation, use the up/down arrow keys to select an answer. x Depreciation expense $3,250; net carrying value $8,750 Your answer b Depreciation expense $3,250; net carrying value $12,000 с Depreciation expense $3,000; net carrying value $8,750 d Depreciation expense $3,000; net carrying value $3,250 Resubmit Answered - Incorrect. 1 attempt left

Answer 1

4.
Depreciation expense = $12000 / 4 = $3000, Book Value = $12000 - 3000/12*13 = $8750
Answer is c. depreciation expense $3000, net carrying value $8750

8.
Answer is b. Both Assets and net income are understated

12.
Answer is a. it decreases retained earnings

1.
Answer is c. February 3

2.
Answer is c. Buying inventory on account

3.
Answer is d. $7000 i.e. 6000/2 + 4000

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