Minor Company Installs a Machine in Its Factory at the Beginning

question 159

Multiple Choice

Minor Company installs a machine in its factory at the beginning of the year at a cost of $135,000.The machine's useful life is estimated to be 5 years,or 300,000 units of product,with a $15,000 salvage value.During its first year,the machine produces 64,500 units of product.Determine the machines' first year depreciation under the double-declining-balance method.

• A)$66,000.
• B)$54,000.
• C)$24,000.
• D)$25,800.
• E)$48,000.

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Definitions:

Middle Managers

Employees who manage the activities of other managers and possibly also staff, positioned between the executive and the frontline managers.

Regular Employees

Workers who are hired on a permanent basis, typically with a full range of benefits, as opposed to temporary or contract employees.

Executives

Senior-level employees of a company or organization, responsible for making key decisions and overseeing operations.

Four-For-Three Promotion

A sales promotion where customers receive four products for the price of three.