Use the Following Information for Questions Below

question 7

Multiple Choice

Use the following information for questions below
On July 1,2019,Bronson Co.purchased some equipment that initially cost $52,800.Additional costs included freight costs $300,non-refundable taxes $6,400,and installation $500.Estimated residual value is $2,000.The company uses a straight-line rate of 10%.Bronson's fiscal year end is June 30.
-What would the depreciation expense be for 2020 if Bronson Co.used the double-declining-balance method?

• A)$12,200
• B)$12,000
• C)$11,600
• D)$ 6,000

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Definitions:

Cultural Background

The cultural environment and experiences that influence an individual's beliefs, values, and behaviors.

Expectation

A belief or anticipation about the outcome of an event or situation in the future.

Perceptual Constancy

A tendency of the human perception system to see familiar objects as having standard shape, size, color, and location regardless of changes in the angle of perspective, distance, and lighting.

Reversibility

The ability in cognitive development to understand that actions can be reversed, restoring the original state.