Marshall Company Purchases a Machine for $800,000

question 281

Multiple Choice

Marshall Company purchases a machine for $800,000.The machine has an estimated residual value of $40,000.The company expects the machine to produce two million units.The machine is used to make 400,000 units during the current period. If the units-of-production method is used,the depreciation rate is:

• A)$1.90 per unit.
• B)$0.38 per unit.
• C)$0.10 per unit.
• D)$2.00 per unit.

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Definitions:

Voting Control

The power to influence or determine outcomes within an organization or governing body through the right to vote.

Commerce Clause

A provision in the U.S. Constitution that grants Congress the power to regulate trade between states, with foreign nations, and among Indian tribes.

Wickard V. Filburn

A landmark Supreme Court case in 1942 that greatly expanded the power of the federal government to regulate economic activity under the Commerce Clause.

U.S. Constitution

The supreme law of the United States that establishes the national framework of government and the fundamental rights of citizens.