A Company Purchased Factory Equipment on June 1, 2015, for $160,000

question 99

Multiple Choice

A company purchased factory equipment on June 1, 2015, for $160,000. It is estimated that the equipment will have a $10,000 salvage value at the end of its 10-year useful life. Using the straight-line method of depreciation, the amount to be recorded as depreciation expense at December 31, 2015, is

• A)$15,000.
• B)$8,750.
• C)$7,500.
• D)$6,250.

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Definitions:

Gallbladder

Pear-shaped receptacle on the inferior surface of the liver; serves as a storage reservoir for bile.

Hepatic Ducts

Ducts within the liver that convey bile to the gallbladder and duodenum.

Gallbladder

A small organ located under the liver that stores and concentrates bile, a digestive fluid produced by the liver.

Stores Bile

The gallbladder is the organ responsible for storing bile produced by the liver, releasing it into the small intestine to aid in digestion.