Jing Company Was Started on January 1, Year 1 When

question 3

Multiple Choice

Jing Company was started on January 1, Year 1 when it issued common stock for $33,000 cash. Also, on January 1, Year 1 the company purchased office equipment that cost $15,700 cash. The equipment was delivered under terms FOB shipping point, and transportation cost was $1,800. The equipment had a five-year useful life and a $6,200 expected salvage value.Using double-declining-balance depreciation, what the amount of depreciation expense and the amount of accumulated depreciation, respectively, that would appear on the December 31, Year 3 financial statements?

• A) $0 and $15,300.
• B) $100 and $11,300.
• C) $3,283 and $18,583.
• D) $5,472 and $14,592.

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Definitions:

Oil Circuit

A system designed for the circulation of oil to various parts of a machine or engine for lubrication and cooling purposes.

Pressure Regulator Valve

A valve that automatically cuts off the flow of a liquid or gas at a certain pressure to maintain the desired pressure level in a system.

Friction Discs

The driven discs in a clutch pack. Most heavy-duty truck chassis use double friction discs. These would be clamped between the clutch pressure plate/intermediate plate/flywheel when the clutch was engaged.

Grooving

The process of cutting narrow slots or grooves on a surface, often for the purpose of installing something or to enhance the surface's properties.