On January 1, 20x1, MBC Purchased a Pattern-Making Machine for $400,000

question 107

Multiple Choice

On January 1, 20x1, MBC purchased a pattern-making machine for $400,000 cash.The machine had an estimated useful life of 25 years and a residual value of $10,000.At the beginning of 20x6, the machine was given a major overhaul, which cost $28,000.The overhaul cost was properly debited to the asset account.The overhaul did not change the estimated residual value but did change the total estimated life to 30 years.The accounting period ends December 31.MBC should recognize 20x6 depreciation of:

• A)$16,000.
• B)$17,000.
• C)$13,600.
• D)$14,000.

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Definitions:

Distinctiveness

A principle suggesting that an event or object is memorable or noticeable because it differs significantly from other events or objects.

Consistency

The principle of maintaining the same attitudes, beliefs, and behaviors over time, which contributes to the predictability and stability of one's actions.

Neuroticism

A personality trait characterized by a long-term tendency to be in a negative emotional state, including feelings of anxiety, depression, and emotional instability.

Mental Illnesses

Disorders that affect an individual's mood, thinking, and behavior, examples include depression, anxiety disorders, schizophrenia, and bipolar disorder.