Mitchell Corporation Bought Equipment on January 1, 2022

question 53

Multiple Choice

Mitchell Corporation bought equipment on January 1, 2022.The equipment cost $300,000 and had an expected salvage value of $50,000.The life of the equipment was estimated to be 6 years.The depreciation expense using the straight-line method of depreciation is

• A)$58,333.
• B)$60,000.
• C)$41,667.
• D)none of these answer choices are correct.

---

Definitions:

Merger Target's Stock

The shares of a company that is the potential or actual subject of an acquisition or merger.

Substantial Premium

A substantial premium refers to a significantly higher price paid over the current market value of an asset or company, typically in mergers and acquisitions.

Congeneric Merger

A merger between companies in the same industry but not the same line of business, aiming for synergies or diversification.

Competitive Position

Describes a company's standing and strategy in comparison to its competitors within the industry.