AA Riser Owns Machinery for Moving and Delivering Plants to Its

question 74

Multiple Choice

AA Riser owns machinery for moving and delivering plants to its customers. The recorded cost of the machinery is $38,000. It is estimated that the machinery will be able to move 120,000 plants over its life. The company depreciates the machinery using straight-line depreciation over a useful life of twelve years and an estimated residual value of $2,000. The amount that will be charged annually as depreciation will be:

• A) $3,600
• B) $3,000
• C) $3,167
• D) $3,800

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Definitions:

Weak Current

A relatively mild or gentle flow of water in a sea, river, or other body of water, which can influence local climates and marine transportation.

Steep Slopes

Land areas where the ground rises sharply, often leading to challenges in construction and increased risk of erosion.

Wind

The flow of gases on a large scale, primarily on Earth's surface, resulting from air moving from high pressure to low pressure areas.

Sedimentary Rocks

Rocks formed by the deposition and subsequent cementation of mineral or organic particles on the floor of oceans or other bodies of water.