On July 1, 2018, a Machine with a Useful Life

question 43

Multiple Choice

On July 1, 2018, a machine with a useful life of five years and a residual value of $4,000 was purchased for $20,000. Under straight-line depreciation, what is the depreciation expense for calendar 2019?

• A) $4,000
• B) $3,556
• C) $3,200
• D) $1,600

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Definitions:

Suspension Systems

The collection of components that connect a vehicle to its wheels, providing stability, handling, and comfort by absorbing and dampening shock.

ASE T5

A certification exam conducted by the National Institute for Automotive Service Excellence, specifically focusing on the diagnosis, service, and repair of medium/heavy duty suspension and steering systems.

Vehicle Retarder

Auxiliary braking device used to supplement the service brakes; in most cases these convert chassis kinetic energy into hydraulic or electrical energy and are located in the driveline. Distinct from engine or transmission retarders.

Kingpin Lock

A security device that locks the kingpin of a semi-trailer to prevent unauthorized coupling or theft of the trailer.