A Machine with a Salvage Value of $2,000 and a Cost

question 16

Multiple Choice

A machine with a salvage value of $2,000 and a cost of $40,000 was purchased on January 1, 2012. What is the depreciation expense for 2012 if the company uses straight-line depreciation for 10 years?

• A)$40,000
• B)$38,000
• C)$4,000
• D)$3,800

---

Definitions:

Sedimentary Sequence

A chronological order of sedimentary rocks laid down in layers, reflecting the history of sediment deposition over time.

Shale

A type of fine-grained sedimentary rock that splits into thin layers, formed from mud composed of clay and other minerals.

Sandstone

A clastic sedimentary rock composed mainly of sand-sized mineral particles or rock fragments.

Rounded Pebbles

Smooth, round stones typically formed by the prolonged action of water or other forms of erosion and weathering on rocks.