The Asset Section of the January 1, 20X9, Balance Sheet

question 32

Multiple Choice

The asset section of the January 1, 20X9, balance sheet of Big Valley Company includes a machine which was acquired on January 1, 20X5. The machine's original cost was $500,000, and the estimated life was determined to be 10 years. The estimated residual value was zero, and the straight- line method of depreciation was chosen. The book value of the machine as of January 1, 20X9, is:

• A) $450,000
• B) $300,000
• C) $500,000
• D) $250,000

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Definitions:

Ether

Organic compounds that are defined by having an oxygen atom bonded to two alkyl or aryl groups.

Carboxylic Acid

Organic acids characterized by the presence of at least one carboxyl group, which consists of a carbon atom double-bonded to an oxygen atom and single-bonded to a hydroxyl group.

Alcohol

A compound containing one or more hydroxyl (OH) groups attached to a carbon atom.

Ester

Organic compounds formed by the reaction of an acid (usually carboxylic acid) with an alcohol, characterized by the functional group -COO-.