A Machine with a Cost of $75,000 Has an Estimated

question 55

Multiple Choice

A machine with a cost of $75,000 has an estimated residual value of $5,000 and an estimated life of four years or 18,000 hours. What is the amount of depreciation for the second full year, using the double-declining-balance method?

• A) $17,500
• B) $37,500
• C) $18,750
• D) $16,667

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Definitions:

Voting Shares

Shares that give the shareholder the right to vote on corporate matters, such as electing the board of directors and approving policies.

Voting Shares

Shares of a company that give the shareholder the right to vote on corporate matters and board elections.

Associate

An entity over which an investor has significant influence, typically evidenced by owning 20% to 50% of the voting stock, but not control.

Remaining

The portion or quantity left over or unallocated after other parts have been accounted for or allocated.