Rivera Company Purchased a Tooling Machine on January 3, 2004

question 51

Multiple Choice

Rivera Company purchased a tooling machine on January 3, 2004 for $500,000.The machine was being depreciated on the straight-line method over an estimated useful life of 10 years, with no residual value.At the beginning of 2011, the company paid $125,000 to overhaul the machine.As a result of this improvement, the company estimated that the useful life of the machine would be extended an additional 5 years (15 years total) .What should be the depreciation expense recorded for the machine in 2011?

• A)$34,375
• B)$41,667
• C)$50,000
• D)$55,000

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Definitions:

Cultural Influences

The impact of societal norms, values, beliefs, and practices on the behavior and attitudes of individuals within that society.

Homeostasis

The self-regulating process by which biological systems tend to maintain stability while adjusting to conditions that are optimal for survival.

Motivation

The process that initiates, guides, and maintains goal-oriented behaviors, driving individuals towards achieving their objectives.

Facial Feedback Effect

The phenomenon that suggests that facial expressions can influence emotional experiences, implying that smiling can make one feel happier.