Hotel-R-Us Owns a Machine That It Purchased on Jan 1,2016

question 29

Multiple Choice

Hotel-R-Us owns a machine that it purchased on Jan 1,2016 for $600,000.The machine had an estimated useful life of 5 years and an estimated residual value of $100,000.The company uses the declining balance method with a rate of 20%.The machine was sold on December 31,2018 for $140,000.What was the accumulated depreciation at December 31,2018?

• A)$292,800
• B)$180,000
• C)$150,000
• D)$76,800