A Machine Was Purchased for $180,000 and It Was Estimated

question 40

Multiple Choice

A machine was purchased for $180,000 and it was estimated to have an $12,000 salvage value at the end of its useful life. Monthly depreciation expense of $1,750 was recorded using the straight-line method. The annual depreciation rate is

• A)15.0%.
• B)2.5%.
• C)10.0%.
• D)12.5%.

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Definitions:

Lungs

The pair of respiratory organs in the chest of humans and many animals, responsible for the exchange of oxygen and carbon dioxide.

Prenatal Period

The developmental period before birth, spanning from conception to birth.

Blastocyst

An early stage in embryonic development characterized by a sphere of cells surrounding a fluid-filled cavity and a cluster of cells that will develop into the embryo.

Teratogen

An agent or factor that causes malformation of an embryo or fetus, including certain drugs, chemicals, and infections.