Pearson Company Bought a Machine on January 1, 2022

question 132

Multiple Choice

Pearson Company bought a machine on January 1, 2022.The machine cost $180,000 and had an expected salvage value of $30,000.The life of the machine was estimated to be 5 years.The book value of the machine at the beginning of the third year would be

• A)$180,000.
• B)$150,000.
• C)$120,000.
• D)$60,000.

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Definitions:

Power Relationships

The dynamics of control, influence, and authority among individuals, groups, or institutions, often examined within political, social, or economic contexts.

Wage Earners

Individuals who receive a regular payment in exchange for their labor or services, usually calculated by the hour, day, or week.

Factory System

A method of manufacturing using machinery and division of labor, leading to mass production but also significant changes in society and the economy.

Machinery Use

Refers to the employment of machines to perform work or tasks, often used to increase efficiency, productivity, and precision in industries and agriculture.