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

question 64

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 $20,000. Under the straight-line method, the book value and the accumulated depreciation of the machine at the end of year two is respectively,

• A)$60,000 and $40,000
• B)$68,000 and $32,000
• C)$40,000 and $60,000
• D)$48,000 and $32,000

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Definitions:

Body Heat

The warmth produced by the body as a result of metabolic processes, vital for maintaining a constant internal temperature in warm-blooded animals.

Scabies

A highly contagious skin infestation caused by the mite Sarcoptes scabiei, leading to intense itching and rash.

Folliculitis

An inflammation of the hair follicles, often appearing as small red bumps, that can occur anywhere on the skin.

Psoriasis

A chronic autoimmune skin condition that causes the rapid buildup of skin cells, leading to scaling on the skin's surface.