The Giovanni Company Purchased a Tooling Machine in 2002 for $120,000

question 122

Multiple Choice

The Giovanni Company purchased a tooling machine in 2002 for $120,000. The machine was being depreciated by the straight-line method over an estimated useful life of 20 years, with no salvage value. At the beginning of 2012, after 10 years of use, Giovanni paid $20,000 to overhaul the machine. Because of this improvement, the machine's estimated useful life would be extended an additional 5 years. What would be the depreciation expense recorded for the above machine in 2012?

• A) $4,000
• B) $5,333
• C) $6,000
• D) $7,333

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Definitions:

Inherited Condition

A health condition or disease that is passed from parents to offspring through genes, also known as a genetic condition.

Sex Chromosomes

Chromosomes that determine the biological sex of an individual, with the most common configurations being XX for females and XY for males.

Intersex Condition

A condition present at birth where an individual has reproductive or sexual anatomy that doesn’t fit the typical definitions of female or male.

Primary Sex Characteristics

The physical structures directly involved in reproduction, such as ovaries in females and testes in males.