Use the Following Information for Questions 30-31

question 60

Multiple Choice

Use the following information for questions 30-31.
Major Corp. purchased a machine on January 1, 2017, for $ 900,000. The machine is being depreciated on a straight-line basis, using an estimated useful life of six years and no residual value. On January 1, 2020, Major determined, as a result of additional information, that the machine had an estimated useful life of eight years from the date of acquisition with no residual value. An accounting change was made in 2020 to reflect this additional information.
-What is the amount of depreciation expense on this machine that should be reported in Major's income statement for calendar 2020?

• A) $ 225,000
• B) $ 180,000
• C) $ 112,500
• D) $ 90,000

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Definitions:

Gap Junctions

Specialized intercellular connections that allow for direct communication between the cytoplasm of two cells, enabling the transfer of ions and molecules.

Cytoplasm

The material or protoplasm within a living cell, excluding the nucleus, filled with organelles and is the site of most cellular activities.

Right Atrium

The upper right chamber of the heart that receives deoxygenated blood from the body through the vena cavae.

Right Ventricle

The chamber within the heart that pumps deoxygenated blood to the lungs through the pulmonary artery.