A Machine Was Purchased on January 1 for $50,000

question 51

Multiple Choice

A machine was purchased on January 1 for $50,000. The machine has an estimated useful life of 10 years with a salvage value of $2,000. Under the double-declining-balance, depreciation expense for each of the first two years is, respectively,

• A)$12,000 and $12,000.
• B)$10,000 and $8,000.
• C)$12,000 and $9,500.
• D)$12,500 and $12,500.

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Definitions:

Mental Age

A measure of an individual's mental attainment based on the average age at which normal individuals achieve a particular score on a test of intelligence or cognitive ability.

Binet-Simon Scale

An early psychological test designed to evaluate intelligence by measuring various cognitive abilities, including memory, attention, and problem-solving skills.

Chronological Age

Refers to the actual age of a person as measured in years from the date of their birth to the current date.

Chronological Age (CA)

A person’s age.