Use the Following Information for Questions 45-46

question 1

Multiple Choice

Use the following information for questions 45-46.
Picton Farms purchased some equipment on January 1, 2017 for $12,600. The equipment has an estimated useful life of 10 years and an estimated residual value of $1,200. The company uses double-declining-balance depreciation.
-The net book value on January 1, 2018 would be

• A) $10,080.
• B) $10,320.
• C) $11,340.
• D) $11,460.

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Definitions:

Break-even Point

The level of production or sales at which total revenues equal total costs, resulting in neither profit nor loss.

Total Revenue

The entire sum of revenue produced from selling goods or services connected to the business's main activities.

Break-even Point

The point at which total costs and total revenue are equal, meaning there is no net loss or gain, and the business is not making a profit.