A Machine Is Purchased on January 1,2014,for $90,000

question 139

Multiple Choice

A machine is purchased on January 1,2014,for $90,000.It is expected to have a useful life of five years and a residual value of $5,000.The company closes its books on December 31.Under the double-declining balance method,what is the total amount of depreciation to be expensed during the 2015 fiscal year (year 2 of 5) ?

• A)$21,600
• B)$22,000
• C)$22,400
• D)$34,000

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Definitions:

Balance

The amount of money held in a financial account at any moment, reflecting all transactions.

Account

A record summarizing all the transactions pertaining to a single item in the accounting equation.

Lockbox Services

Bank-provided services that expedite the collection and processing of account receivable payments by having them sent directly to a secure post office box.

Collection Funds

Monies that are being gathered or have been gathered for a specific purpose, often related to financial transactions or payments.