Machinery Was Purchased on January 1 for $51,000

question 150

Multiple Choice

Machinery was purchased on January 1 for $51,000. The machinery has an estimated life of seven years and an estimated salvage value of $9,000. Double-declining-balance depreciation for the second year would be (round calculations to the nearest dollar) :

• A) $10,929
• B) $6,000
• C) $10,500
• D) $10,408

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Definitions:

Likelihood of Confusion

This refers to a standard used in trademark law to assess whether the similarity between two marks is likely to confuse consumers about the source of the products or services.

Trade Secret

A form of intellectual property comprising confidential information that provides a business with a competitive edge.

Sufficient Value

A concept in contract law that refers to the necessity of both parties exchanging something of value for a contract to be considered valid.

Trademark

A distinct symbol, pattern, or phrase that distinguishes the goods or services of one origin from those of another.