Tomko Company Purchased Machinery with a List Price of $96000

question 257

Multiple Choice

Tomko Company purchased machinery with a list price of $96000. They were given a 10% discount by the manufacturer. They paid $600 for shipping and sales tax of $4500. Tomko estimates that the machinery will have a useful life of 10 years and a residual value of $30000. If Tomko uses straight-line depreciation annual depreciation will be

• A) $6150.
• B) $6108.
• C) $9150.
• D) $5640.

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Definitions:

Pretax Dollars

Income or funds that are used or invested before any taxes are deducted, often in the context of retirement savings or health accounts.

X-ray and Laboratory Services

Medical diagnostic services that include radiographic imaging and laboratory tests to aid in the evaluation of health conditions.

Hospital Coverage

A type of health insurance benefit that covers the expenses associated with hospital stays, including room charges, nursing care, testing, and medication.

Crossover Claim

A health insurance claim that is automatically transmitted from Medicare to a secondary insurer to process benefits after Medicare has paid its portion.