On January 1, 2013, Plover Ltd

question 32

Multiple Choice

On January 1, 2013, Plover Ltd.purchased a machine for $330,000 and depreciated it using the straight-line method with an estimated useful life of eight years with no residual value.On January 1, 2016, Plover determined that the machine had a useful life of only six years from the date of acquisition, but will have a residual value of $30,000.An accounting change was made in 2016 to reflect these additional facts.At December 31, 2017, the accumulated depreciation for this machine should have a balance of

• A)$182,500.
• B)$187,500.
• C)$241,250.
• D)$250,000.

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Definitions:

In Process

Relating to materials or products that are in the course of being manufactured but are not yet completed.

Equivalent Units

A concept used in process costing that converts partially completed units into a number of fully completed units.

In Process

A term that describes items or activities that are currently underway but not yet completed, often used in manufacturing and project management.

Conversion Cost

Refers to the combination of labor and manufacturing overhead costs incurred to convert raw materials into finished goods.