On June 1, 2016 Morgan Manufacturing Acquired a Machine for $100,000

question 8

Multiple Choice

On June 1, 2016 Morgan Manufacturing acquired a machine for $100,000 with an estimated useful life of 5 years and an estimated residual value of $10,000.The company uses the double declining method of depreciation and takes a full year's depreciation in the year of acquisition and none in the year of disposition.If the machine were disposed of for $16,000 on May 1, 2018, the loss on disposal would be

• A)$20,000.
• B)$26,400.
• C)$24,000.
• D)$36,000.

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Definitions:

Indifference Curves

Graphical representations in microeconomics that show different bundles of goods between which a consumer is indifferent, meaning they have no preference for one over the other.

Consumption Bundle

A combination of various goods and services that an individual consumes at a given time.

Slope

In mathematics, the rate at which a line rises or falls relative to a horizontal distance.

Indifference Curves

Graphs showing different bundles of goods between which a consumer is indifferent, reflecting the consumer's preferences and trade-offs.