Mohr Company Purchases a Machine at the Beginning of the Year

question 228

Multiple Choice

Mohr Company purchases a machine at the beginning of the year at a cost of $24,000.The machine is depreciated using the double-declining-balance method.The machine's useful life is estimated to be 5 years with a $4,000 salvage value.The machine's book value at the end of year 2 is:

• A)$12,000.
• B)$7,200.
• C)$9,600.
• D)$8,640.
• E)$14,400.

---

Definitions:

Nonprofit Organizations

Entities that operate for the benefit of the general public without the primary goal of making profits for owners or stakeholders.

E-Commerce

The buying and selling of goods and services through the internet, including the transfer of money and data to execute these transactions.

Virtual Account Number

A unique identifier used in financial transactions to represent a user's actual account information securely, often to protect financial data in online transactions.

Electronic Payment

Electronic payment refers to a method of making transactions or paying for goods and services through electronic means over the internet, without the use of check or cash.