Machinery Was Purchased for $170,000 on January 1, 2013

question 63

Multiple Choice

Machinery was purchased for $170,000 on January 1, 2013. Freight charges amounted to $7,000 and there was a cost of $20,000 for building a foundation and installing the machinery. It is estimated that the machinery will have a $30,000 salvage value at the end of its 5-year useful life. What is the amount of accumulated depreciation at December 31, 2014, if the straight-line method of depreciation is used?

• A) $66,800.
• B) $33,400.
• C) $28,600.
• D) $57,200.

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Definitions:

Concrete Operational

A stage in Piaget's theory of cognitive development (ages 7-12) where children gain a better understanding of concrete events and logical operations, but struggle with abstract concepts.

Phonics

A method of teaching reading and spelling that stresses symbol-sound relationships, used especially in early grades.

Language

A system of communication used by a particular community or country, consisting of written, spoken, or gestural symbols.

Stanford-Binet Intelligence Scale

A standardized test that measures intelligence and cognitive abilities in children and adults, originating from the early 20th century.