A Machine with a Cost of $75,000 Has an Estimated

question 15

Multiple Choice

A machine with a cost of $75,000 has an estimated residual value of $5,000 and an estimated life of 4 years or 18,000 hours. What is the amount of depreciation for the second full year, using the double declining-balance method?

• A) $17,500
• B) $37,500
• C) $18,750
• D) $16,667

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Definitions:

Contracts

Legal agreements between two or more parties that create mutual obligations enforceable by law.

Actual Authority

The express and implied powers a principal intentionally grants to its agent.

Implied Authority

Authority of an agent that is not expressly granted but is inferred from the acts or the conduct of the principal.

Apparent Authority

A form of authority that a third party reasonably believes an agent has, based on the principal's representations, leading the third party to conclude that the agent is acting within the scope of their authority.