Kingston Company Purchased a Piece of Equipment on January 1

question 35

Multiple Choice

Kingston Company purchased a piece of equipment on January 1 2016. The equipment cost $200000 and had an estimated life of 8 years and a salvage value of $25000. What was the depreciation expense for the asset for 2017 under the double-declining-balance method?

• A) $21667.
• B) $37500.
• C) $50000.
• D) $39063.

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Definitions:

Lipid Accumulation

The buildup of fats or lipids within cells or tissues, which can be a normal storage process or indicative of disease.

Chronic Obstructive Pulmonary Disease (COPD)

A group of lung conditions that cause breathing difficulties, including emphysema and chronic bronchitis, usually caused by long-term exposure to irritants.

Nasal Cannula

A medical device used to deliver supplemental oxygen or airflow to a patient in need, consisting of a lightweight tube with two prongs for insertion into the nostrils.

Oxygen Delivery

The process of providing oxygen to the body's tissues, often involving respiratory and circulatory systems or medical interventions in healthcare settings.