Use the Following Information for Questions

question 31

Multiple Choice

Use the following information for questions.
Ventura Corporation purchased machinery on January 1, 2009 for $630,000.The company used the sum-of-the-years'-digits method and no salvage value to depreciate the asset for the first two years of its estimated six-year life.In 2010, Ventura changed to the straight-line depreciation method for this asset.The following facts pertain:

-The amount that Ventura should report for depreciation expense on its 2011 income statement is

• A)$120,000.
• B)$105,000.
• C)$75,000.
• D)none of the above.

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Definitions:

1933 Act

Also known as the Securities Act of 1933, a U.S. law enacted to ensure more transparency and honesty in the marketing and sale of securities, aiming to prevent frauds.

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Dodd-Frank Act of 2010

a comprehensive and complex piece of financial reform legislation passed in 2010 in the United States, aimed at preventing the repeat of the financial crisis of 2008.

Securities and Exchange Commission

A U.S. federal agency responsible for enforcing the federal securities laws and regulating the securities industry, the nation's stock and options exchanges, and other related activities.