On April 1, 2022, a Machine Was Purchased for $33,600

question 144

Multiple Choice

On April 1, 2022, a machine was purchased for $33,600.It was estimated that it would have a $3,200 residual value at the end of its 5-year useful life.It was also estimated that the machine would be used for a total of 80,000 hours over the 5 years.If the actual number of machine hours used in 2022 was 12,000 hours and the company uses the units-of-production method of depreciation, the depreciation expense for 2022 would be

• A)$5,040.
• B)$4,560.
• C)$3,780.
• D)$3,420.

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Definitions:

Purchase Order

A document issued by a buyer to a seller, detailing types, quantities, and agreed prices for products or services.

Bill

A statement of money owed for goods sold or services provided, typically specifying the total amount due and payment terms.

Inventory Transactions

Operations or activities involving the purchase, sale, or management of stock and merchandise in a business.

QBO

Stands for QuickBooks Online, an accounting software that helps in managing business finances in the cloud.