Equipment Was Purchased for $150,000

question 232

Multiple Choice

Equipment was purchased for $150,000.Freight charges amounted to $7,000 and there was a cost of $20,000 for building a foundation and installing the equipment.It is estimated that the equipment will have a $30,000 salvage value at the end of its 5-year useful life.Depreciation expense each year using the straight-line method will be

• A)$35,400.
• B)$29,400.
• C)$24,600.
• D)$24,000.

---

Definitions:

Business-Level Strategy

A plan that outlines how a company will compete in a particular market, including choices about product and service offerings.

Competitive Strategy

A plan of action designed to achieve a sustainable advantage over competitors, through understanding and responding to competitive forces.

Contingency Strategy

A plan prepared to address specific unforeseen events or situations that may impact the organization.

Marketing Strategy

A plan of action designed to promote and sell a product or service.