A Company Purchased Factory Equipment on April 1, 2014, for $96,000

question 72

Multiple Choice

A company purchased factory equipment on April 1, 2014, for $96,000. It is estimated that the equipment will have a $12,000 salvage value at the end of its 10-year useful life. Using the straight-line method of depreciation, the amount to be recorded as depreciation expense at December 31, 2014, is

• A) $9,600.
• B) $8,400.
• C) $6,300.
• D) $7,200.

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Definitions:

Gourmand Pastries

High-quality, often elaborate or luxuriously prepared baked goods intended for those who delight in eating fine food.

Fresh Fruit

Unprocessed fruit, in its natural state, often consumed for its nutritional value.

Registration Statement

A set of documents, including financial statements and a prospectus, filed with the Securities and Exchange Commission (SEC) for a company seeking to issue publicly-traded securities.

Prospectus

An official document that companies must publish when offering securities for sale to the public, detailing the investment's risks, objectives, and financial statements.