Farmer Company Purchased Machine on January 1, Year 1 for $82,000

question 58

Multiple Choice

Farmer Company purchased machine on January 1, Year 1 for $82,000. The machine is estimated to have a 5-year life and a salvage value of $4,000. The company uses the straight-line method.At the beginning of Year 4, Farmer revised the expected life to eight years. What is the annual amount of depreciation expense for each of the remaining years in the machine's life?

• A)$6,240
• B)$4,400
• C)$7,040
• D)$3,900

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Definitions:

Manage Themselves

The ability of individuals or groups to regulate their own actions and affairs without external intervention.

Relationships

The way in which two or more concepts, objects, or people are connected, or the state of being connected or interrelated.

Leader-follower Congruence

The degree of alignment between the values, goals, and actions of leaders and their followers within an organization or group.

Transparency

The practice of being open, honest, and straightforward about various activities, allowing stakeholders to have insight into the decisions and actions of an organization.