XYZ Corporation Bought a Machine on January 1, 2011

question 47

Multiple Choice

XYZ Corporation bought a machine on January 1, 2011. In purchasing the machine, the company paid $50,000 cash and signed an interest-bearing note for $100,000. The estimated useful life of the machine is five years, after which time the salvage value is expected to be $15,000. Given this information, how much depreciation expense would be recorded for the year ending December 31, 2012, if the company uses the sum-of-the-years'-digits depreciation method?

• A) $45,000
• B) $40,000
• C) $36,000
• D) $34,000

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Definitions:

Language Development

The process by which individuals acquire the capacity to understand and communicate language during infancy and early childhood.

Toddlers

Young children, typically between the ages of one and three years old, who are in the early stages of learning to walk and talk.

Infants

Very young children or babies, typically those under one year of age.

Recasting

In language learning, the method of correcting a student's mistake by correctly reformulating their erroneous utterance without explicit indication of the error.