On January 1,Year 1,Milton Manufacturing Company Purchased Equipment with a List

question 27

Multiple Choice

On January 1,Year 1,Milton Manufacturing Company purchased equipment with a list price of $88,000.A total of $4,000 was paid for installation and testing.During the first year,Milton paid $6,000 for insurance on the equipment and another $2,200 for routine maintenance and repairs.Milton uses the units-of-production method of depreciation.Useful life is estimated at 100,000 units,and estimated salvage value is $8,000.During Year 1,the equipment produced 13,000 units.What is the amount of depreciation for Year 1?

• A)$10,920
• B)$11,960
• C)$11,700
• D)$12,740

---

Definitions:

Progressive Dementia

A decline in cognitive function due to damage or disease in the brain beyond what might be expected from normal aging.

Life Review

A psychological process often occurring in older adults, involving the recounting and reevaluation of past experiences and events.

Board Games

Games played on a pre-designed surface or "board," involving pieces or counters moved or placed according to a set of rules.

Instrumental Activity of Daily Living (IADL)

Tasks that are not necessary for basic functioning but are essential for an individual to live independently in a community.