B Company Switched from the Sum-Of-The-Years-Digits Depreciation Method to Straight-Line

question 121

Multiple Choice

B Company switched from the sum-of-the-years-digits depreciation method to straight-line depreciation in 2018. The change affects machinery purchased at the beginning of 2016 at a cost of $72,000. The machinery has an estimated life of five years and an estimated residual value of $3,600. What is B's 2018 depreciation expense?

• A) $9,120.
• B) $13,680.
• C) $15,840.
• D) $19,200.

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Definitions:

Tantalus

A figure in Greek mythology who was punished in the afterlife by being made to stand in water that receded when he tried to drink and under a tree whose fruit always eluded his grasp.

Mythological

Pertaining to myths or the study of myths; relating to, based on, or appearing in myths.

Nietzsche

A German philosopher, cultural critic, and poet, known for his critiques of the morals and religion of his time, emphasizing the importance of individualism and will to power.

Reason

The capacity of the human mind to analyze, assess, and form judgments through logical thinking.