Art Modell Company Reported $61,000 in Depreciation Expense for the Current

question 61

Multiple Choice

Art Modell Company reported $61,000 in depreciation expense for the current year using the double- declining- balance method. The company estimates that it saved net cash of $12,000 in income taxes by using the double- declining- balance instead of the straight- line method. The company has a 30% tax rate. What would depreciation expense have been using the straight- line method?

• A)$7,200
• B)$40,000
• C)$21,000
• D)$43,857

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Definitions:

Osteitis

Inflammation of the bone, often resulting from infection, which can lead to bone pain, localized warmth, and erythema over the affected area.

Digestion

The biological process by which the body breaks down food into absorbable components in the gastrointestinal tract.

Small Intestine

A part of the digestive system where most of the digestion and absorption of nutrients occurs.