A Machine Was Purchased on January 1 for $100,000

question 82

Multiple Choice

A machine was purchased on January 1 for $100,000. The machine has an estimated useful life of 5 years with a salvage value of $10,000. Under the double-declining-balance method, depreciation expense for each of the first two years is, respectively,

• A)$45,000 and $22,500.
• B)$40,000 and $24,000.
• C)$45,000 and $ 27,500.
• D)$22,500 and $ 22,500.

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Definitions:

Surplus Materials

Excess resources or goods that are available after satisfying the planned demand or requirement.

Scrap Disposal

The process of removing, processing, and recycling waste materials generated during manufacturing or consumption.

Investment Return

The profit or loss on an investment over a specified period, expressed as a percentage of the investment's cost.

Segregation and Storage

The practice of keeping different types of materials or products separate, along with organizing and maintaining them in a designated area.