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:

Ambiguity

A situation or statement that has more than one possible interpretation or meaning, often leading to confusion or misunderstanding.

Face-To-Face Meeting

A personal encounter or conference between individuals to discuss matters directly.

Videoconferencing Tool

A software or application that facilitates virtual meetings or conferences through the internet, allowing participants to see, hear, and interact with each other in real-time.

Teleconferencing Tool

A digital platform or software that enables individuals to conduct meetings or presentations through electronic means, often with video capabilities.