Minor Company Installs a Machine in Its Factory at the Beginning

question 37

Multiple Choice

Minor Company installs a machine in its factory at the beginning of the year at a cost of $135,000.The machine's useful life is estimated to be 5 years,or 300,000 units of product,with a $15,000 salvage value.During its first year,the machine produces 64,500 units of product.Determine the machines' first year depreciation under the straight-line method.

• A)$27,000.
• B)$29,025.
• C)$25,800.
• D)$23,779.
• E)$24,000.

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Definitions:

Cells

The basic structural, functional, and biological units of all living organisms, serving as the building blocks of life.

Semipermeable Membrane

A type of barrier that allows certain molecules or ions to pass through it by diffusion and occasionally specialized "facilitated diffusion."

Water

A transparent, tasteless, odorless, and nearly colorless chemical substance, which is the main constituent of Earth's hydrosphere and the fluids of all known living organisms.

Millions

A numerical unit representing one thousand thousands, or 1,000,000.