Use the Following Information for Questions

question 15

Multiple Choice

Use the following information for questions.
Minor Corp.purchased a machine on January 1, 2014, for $600,000.The machine is being depreciated on a straight-line basis, using an estimated useful life of six years and no residual value.On January 1, 2017, Minor determined, as a result of additional information, that the machine had an estimated useful life of eight years from the date of acquisition with no residual value.An accounting change was made in 2017 to reflect this additional information.
-What is the amount of depreciation expense on this machine that should be reported in Minor's income statement for calendar 2017?

• A)$150,000
• B)$120,000
• C)$75,000
• D)$60,000

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Definitions:

Self-consciousness

An acute sense of self-awareness that is marked by self-reflection and the awareness of how one is perceived by others.

Hypothetical-deductive Reasoning

A type of logical thinking that involves forming hypotheses and systematically testing them to deduce conclusions.

Scientific Inquiry

A systematic process of investigation and experimentation used to explore observations and answer questions about the natural world.

Abstract Reasoning

The ability to analyze information, detect patterns and relationships, and solve problems on a complex, intangible level.