Mink Incpurchased Machinery That Was Installed and Ready for Use on on January

question 56

Multiple Choice

Mink Inc.purchased machinery that was installed and ready for use on January 3, 2017, at a total cost of $230,000.Residual value was estimated at $30,000.The machinery will be depreciated over five years using the double declining-balance method.For the calendar year 2018, Mink should record depreciation expense on this machinery of

• A)$48,000.
• B)$55,200.
• C)$60,000.
• D)$92,000.

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Definitions:

Negligence Per Se

A legal doctrine where an act is considered negligent because it violates a statute or regulation.

Breach of Warranty

The failure to fulfill the terms of a promise or claim made regarding the quality or nature of a product or service.

Product Liability Lawsuit

A legal claim brought against a manufacturer, distributor, or seller for damages or injuries caused by a defective or dangerous product.

Defective

Pertaining to a product or good that fails to meet quality standards or is unfit for its intended use due to flaws or errors.