Wildhorse Company purchases equipment on January 1, Year 1, at a cost of $261,000. The asset is expected to have a service life of 6 years and a salvage value of $20,000. Correct answer icon Your answer is correct. Compute the amount of depreciation for each of Years 1 and 2 using the straight-line depreciation method.

Ryan is deciding between attending western state university and eastern state university. he cannot attend both universities simultaneously. both are fine universities, but the reputation of western is slightly higher, as is the tuition. let mu subscript upper e and mu subscript upper w be ryan's marginal utilities from attending eastern and western state universities respectively and upper p subscript upper e and upper p subscript upper w be the prices of attending eastern and western state universities. using the rule of consumer optimum, ryan will decide to attend eastern state university, if mue/pe exceeds muw/pw attend eastern state university if mue/pe is less than muw/pw attend western state university, if pe/mue< pw/muw attend western state university, since it gives him more utility.