Use the Following Information for the Next Questions 104 and 105

question 35

Multiple Choice

Use the following information for the next questions 104 and 105.
A corporation using the double-declining-balance method of depreciation purchased a new machine on January 1, 2016.The machine cost $200,000, had an estimated useful life of 8 years and $25,000 residual value at the end of its useful life.
-A piece of equipment was acquired on January 1,2015,at a cost of $22,000,with an estimated residual value of $2,000 and an estimated useful life of four years.The company uses the double-declining-balance method.What is its book value at December 31,2016?

• A) $5,500
• B) $10,000
• C) $11,000
• D) $12,000

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Definitions:

Net Working Capital

The difference between a company's current assets and its current liabilities, indicating the liquid assets available for running its operations.

Discontinued Operations

Parts of a company's core business or units that have been sold, disposed of, or ceased operations, which are reported separately in financial statements.

Interim Report

A financial statement that reports a company's financial performance for a period shorter than a fiscal year, often quarterly.

Net Of Tax

Refers to the amount remaining after taxes have been deducted, used to describe financial results or figures that are exclusive of tax effects.