On July 1, 2015, a Machine with a Useful Life

question 118

Multiple Choice

On July 1, 2015, a machine with a useful life of five years and a residual value of $4,000 was purchased for $20,000.Under straight-line depreciation, what is the depreciation expense for calendar 2016?

• A)$4,000
• B)$3,556
• C)$3,200
• D)$1,600

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Definitions:

Incentivize

To motivate or encourage someone by providing a reward or incentive.

Fruit Pickers

Laborers who are employed in agriculture to manually harvest fruits from plants and trees.

Compensation

Payment or rewards given to employees for their work or services.

Compensation Rate

The amount of money or benefits given to an employee in exchange for their work or service.