A Machine Is Purchased on January 1, 2011, for $90,000

question 38

Multiple Choice

A machine is purchased on January 1, 2011, for $90,000. It is expected to have a useful life of five years and a residual value of $5,000. The company closes its books on December 31. Under the double-declining balance method, what is the total amount of depreciation to be expensed during the 2012 fiscal year (year 2 of 5) ?

• A) $21,600
• B) $22,000
• C) $22,400
• D) $34,000

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Definitions:

Group Polarization

The phenomenon where a group of individuals tends to make decisions that are more extreme than the initial inclination of its members.

Approval

The act of accepting or consenting to something, often given formally or officially.

Learner

An individual who is acquiring knowledge or skill through study, experience, or being taught.

Delivering Shock

An experimental method often used in psychological research to study obedience or the impact of punishments on behavior.