A Tool and Die Company Buys a Machine for $175,000

question 65

Multiple Choice

A tool and die company buys a machine for $175,000 and it depreciates at a rate of 50% per year.(In other words,at the end of each year the depreciated value is 50% of what it was at the beginning of the year. ) Find the depreciated value of the machine after 5 full years. ​

• A)$5470.75
• B)$5467.75
• C)$5468.75
• D)$5471.75
• E)$5469.75

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Definitions:

Cycle Inventory

Inventory that turns over repeatedly throughout a period as part of the normal course of business operations.

Safety Inventory

Extra inventory held to guard against uncertainty in demand or supply, ensuring that demand can be met without stockouts.

Inexpensive Mode

A cost-effective way or method of completing a task or process, often referring to transportation or production methods.

High Value

Items or services that are considered to be of great importance or worth, often commanding a high price in the market.