On January 1, 2014, CK Purchased a Machine That Had

question 26

Essay

On January 1, 2014, CK purchased a machine that had a list price of $22,980. CK paid cash of $10,000 and executed a one-year non-interest-bearing note for the $12,980 balance. The going rate of interest was 18 percent. Assume straight-line amortization with an estimated useful life of six years and a $1,200 estimated residual value. Amortization expense for the accounting year ending December 31, 2014, would be $___________________.

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Definitions:

Observations

The action or process of closely observing or monitoring something or someone.

Hypotheses

Proposed explanations for a phenomenon, meant to be tested through experimentation or observation.

Instruments

Tools or devices designed for a specific purpose, especially scientific or musical.

Independent Variable

The factor in a controlled experiment that is being manipulated.