Stine Company Purchased Machinery with a List Price of $96000

question 125

Multiple Choice

Stine Company purchased machinery with a list price of $96000.The company was given a 10% discount by the manufacturer.They paid $600 for shipping and sales tax of $4500.Stine estimates that the machinery will have a useful life of 10 years and a residual value of $30000.If Stine uses straight-line depreciation annual depreciation will be

• A)$6150.
• B)$6108.
• C)$9150.
• D)$5640.

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Definitions:

Slope

In mathematics, the measure of the steepness or incline of a line, typically defined as the ratio of the vertical change to the horizontal change.

Utility Function

An economic concept that measures preferences over a set of goods and services, reflecting satisfaction or happiness.

Indifference Curve

A graphical representation in microeconomic theory of all possible bundles of goods between which a consumer is indifferent, showing preferences of equal utility.

Same Amount Of X And Y

This refers to a situation or condition where quantities or magnitudes of two variables, X and Y, are equal.