In April 2015,Emma Acquired a Machine for $60,000 for Use

question 32

Multiple Choice

In April 2015,Emma acquired a machine for $60,000 for use in her business.The machine is classified as 7-year property.Emma does not expense the asset under Sec.179.Emma's depreciation on the machine this year is

• A)$30,000.
• B)$60,000.
• C)$6,428.
• D)$8,574.

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Definitions:

Graphical Approach

A method of solving problems or representing data using diagrams, charts, or graphs.

CVP Analysis

Cost-Volume-Profit Analysis, a management accounting methodology used for understanding the relationship between costs, volumes of sales, and profit.

Variable Cost

Costs that vary in proportion to the level of activity or volume of production in a business.

Annual Fixed Costs

Expenses that a business incurs that do not fluctuate with changes in production level or sales volume, such as rent or salaries, benchmarked on a yearly basis.