Tomko Company Purchased Machinery with a List Price of $32,000

question 167

Multiple Choice

Tomko Company purchased machinery with a list price of $32,000.They were given a 10% discount by the manufacturer.They paid $200 for shipping and sales tax of $1,500.Tomko estimates that the machinery will have a useful life of 10 years and a residual value of $10,000.If Tomko uses straight-line depreciation, annual depreciation will be

• A)$2,050.
• B)$2,036.
• C)$3,050.
• D)$1,880.

---

Definitions:

Resemblance

The degree of similarity or likeness between two persons, objects, or concepts.

IQ

Intelligence Quotient, a measure of a person's intellectual abilities in relation to their age group.

Identical Twins

Twins who originate from the same fertilized egg, sharing 100% of their genes, and typically having very similar physical appearances.

Intellectual Development

The growth and change in intellectual capabilities such as learning, problem-solving, and decision-making over a person's lifetime.