Proctor Papers Purchased a Machine on January 1,2020 at a Cost

question 63

Multiple Choice

Proctor Papers purchased a machine on January 1,2020 at a cost of $380,000 with an estimated residual value of $30,000 at the end of its estimated useful life of 8 years.On January 1,2022 Proctor Paper estimates that the machine only has a remaining life of 5 years and a residual value of $20,000.Proctor Paper uses straight-line depreciation.Depreciation expense for 2022 would be

• A)$48,500.
• B)$54,500.
• C)$57,000.
• D)$72,000.

---

Definitions:

Antacids

Substances that neutralize stomach acid to relieve heartburn, indigestion, and stomach upset.

Antibiotics

Medicinal substances used to kill or inhibit the growth of bacteria to treat and prevent bacterial infections.

Emulsification

The process of breaking up and evenly dispersing fat or oil in a liquid to form a stable mixture, such as in making mayonnaise or vinaigrettes.

Peristalsis

The series of wave-like muscle contractions that moves food through the digestive tract.