Answer:
(D) Annual depreciation will be $11000
And book value will be $38000
Explanation:
We have given Kansas purchased equipment for $60000
So Acquisition cost = $60000
Residual value = $5000
We know that annual depreciation is given by
Life time = 5 years
Annual depreciation expense 
Depreciation expense is the same every year under straight-line. Therefore, in 2013 the depreciation expense is $11,000
Book value is given by
Book value = Acquisition Cost - Accumulated Depreciation
= 
The Book Value of the asset is therefore $38,000 after 2 years of service
Answer: d. Control, because they are attempting to minimize labor costs
Explanation:
By trying to reduce labor costs, FlanCrest is engaging in a Control HR Strategy that will see them control the costs being expended on human resources.
This case shows how Controling activities such as cost cutting can be done to keep customers because if FlanCrest did not do what they did, they might have lost Widespread Motors as customers.
