A Machine Was Purchased for $180,000 and It Was Estimated

question 40

Multiple Choice

A machine was purchased for $180,000 and it was estimated to have an $12,000 salvage value at the end of its useful life. Monthly depreciation expense of $1,750 was recorded using the straight-line method. The annual depreciation rate is

• A)15.0%.
• B)2.5%.
• C)10.0%.
• D)12.5%.