Badger Corporation Purchased a Machine for $150,000 on January 1

question 43

Multiple Choice

Badger Corporation purchased a machine for $150,000 on January 1, 2010. Badger will depreciate the machine using the straight-line method using a five-year period with no residual value. As a result of an error in its purchasing records, Badger did not recognize any depreciation for the machine in its 2010 financial statements. Badger discovered the problem during the preparation of its 2011 financial statements. What amount should Badger record for depreciation expense on this machine for 2011?

• A) $0
• B) $30,000
• C) $37,500
• D) $60,000

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Definitions:

Stromatolites

Layered structures formed by the growth of microorganisms, often found in fossil form and important for understanding the Earth's early biosphere and atmospheric evolution.

Yeasts

A diverse group of unicellular fungi that are widely used in baking, brewing, and biotechnology for their ability to ferment sugars.

Ediacaran Fauna

Refers to an assemblage of ancient, soft-bodied marine organisms that lived during the Ediacaran Period, approximately 635 to 541 million years ago.

Tetrapods

Vertebrate animals having four limbs or limb-like appendages, including amphibians, reptiles, birds, and mammals.