On January 1, 2013, a Machine with a Useful Life

question 54

Multiple Choice

On January 1, 2013, a machine with a useful life of five years and a residual value of $2,500 was purchased for $25,000. Using the double-declining-balance method, the depreciation expense for the year ending December 31, 2014 would be

• A) $5,400
• B) $10,000
• C) $9,000
• D) $6,000

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Definitions:

Upflow

The upward movement of fluid, air, or other substances, which can affect environmental conditions and processes, such as in aquifers or atmospheric phenomena.

Scoured

Describes the effect of being worn down or cleaned by fast-moving water or other fluids, often related to geological surfaces.

Permafrost

A condition in which water in the uppermost part of the ground remains frozen all or most of the time.

Ground

The solid surface of the Earth, where various geological and biological processes occur.