Pearson Company Bought a Machine on January 1, 2014

question 232

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 depreciable cost of the machine is

• A) $144,000.
• B) $120,000.
• C) $40,000.
• D) $24,000.

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Definitions:

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