Use the Following Information for Questions

question 113

Multiple Choice

Use the following information for questions
On January 1, 2011, Flowers Unlimited purchased a new delivery van. The van cost $35,000 with an estimated life of 5 years and $5,000 residual value. Double diminishing-balance depreciation will be used.
-What is the balance in the Accumulated Depreciation account at the end of 2012?

• A)$22,400
• B)$19,200
• C)$12,600
• D)$10,800

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Definitions:

Tax Bracket

A range of incomes taxed at a specific rate; tax brackets result in a progressive tax system, where taxation progressively increases as income grows.

Forecast Error

The difference between the expected or predicted values and what actually occurs, usually in the context of economic or financial forecasts.

Schrader Valve

A type of valve used on tires that allows air to enter but prevents it from escaping, enabling inflation and pressure maintenance.

Tire Deflate

The process or action resulting in a reduction of air pressure inside a tire, which may be intentional or due to a leak or puncture.