Use the Following Information for the Next Questions 104 and 105

question 72

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.
-Use the information above to answer the following question.What is the balance of the Accumulated Depreciation account at the end of 2017?

• A) $37,500
• B) $112,500
• C) $50,000
• D) $87,500

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Definitions:

Full Payment

Completion of payment for a product or service in total, settling all owed amounts without remaining balances.

General Journal

A fundamental accounting ledger where all financial transactions are initially recorded, employing a double-entry system.

Sales Tax

A tax imposed by government on sales of goods and services, collected by the seller and passed on to the government.

Cash Customer

A customer who pays for goods or services with cash at the time of purchase rather than buying on credit.