A Machine Was Purchased for $180,000 and It Was Estimated

question 217

Multiple Choice

A machine was purchased for $180,000 and it was estimated to have an $12,000 salvage value at the end of its useful life. Monthly depreciation expense of $1,400 was recorded using the straight-line method. The annual depreciation rate is

• A) 12%.
• B) 2%.
• C) 8%.
• D) 10%.

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