Pearson Company Bought a Machine on January 1, 2014

question 188

Multiple Choice

Pearson Company bought a machine on January 1, 2014. The machine cost $144,000 and had an expected salvage value of $24,000. The life of the machine was estimated to be 5 years. The depreciation expense using the straight-line method of depreciation is

• A) $40,000.
• B) $28,800.
• C) $24,000.
• D) none of these answer choices are correct.

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Definitions:

UETA

The Uniform Electronic Transactions Act which provides legal recognition for electronic signatures and records in commercial transactions, ensuring their validity and legal effect.

States

In the context of the United States, states are the constituent political entities that share sovereignty with the federal government and have their own government and constitution.

Equitable Remedy

A form of justice administered according to fairness as contrasted with strictly formulated rules of common law.

Specific Performance

A legal remedy in contract disputes where a court orders the party who breached the contract to fulfill their obligations as specifically stated in the contract, rather than just paying damages.