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:

Anxiety Disorder

A mental health disorder characterized by feelings of worry, anxiety, or fear that are strong enough to interfere with one's daily activities.

Psychotherapy

A form of therapy focused on behavioral, psychological, or emotional issues, where treatment involves talking with a mental health professional.

Tic Disorder

A condition characterized by involuntary, rapid, sudden movements or vocalizations that occur repeatedly.

Uncontrollable Sounds

Involuntary noises, such as those produced in conditions like Tourette syndrome, that an individual cannot suppress.