Humphrey Contractors Purchased Customized Equipment in January, 2017 for $620,000

question 102

Multiple Choice

Humphrey Contractors purchased customized equipment in January, 2017 for $620,000. The manufacturer warranted the equipment for six years. Humphrey used double-declining balance depreciation with a useful life of eight years and no salvage value. After two full years, he now believes that the equipment will only last a total of five years. Compute his depreciation expense for 2019 if he switches to straight-line depreciation. (Round any intermediate calculations to the nearest cent and your final answer to the nearest dollar.)

• A) $77,500
• B) $93,000
• C) $116,250
• D) $124,000

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Definitions:

Mass Transportation

Systems designed to move large numbers of people efficiently within urban and suburban areas, including buses, trains, subways, and trams.

Traffic Problems

Issues related to the congestion and management of vehicles on roadways, affecting travel time and safety.

Decibels

A unit of measurement used to express the intensity of sound, symbolized as dB.

Human Ear

A part of the human body that is responsible for detecting sound and helping in the balance and positioning of the body.