Centennial Owns a Machine That It Purchased on Jan 1,2016

question 126

Multiple Choice

Centennial owns a machine that it purchased on Jan 1,2016 for $400,000.The machine had an estimated useful life of 10 years with a production capacity for 80,000 units and was expected to have no residual value.The company uses the units-of-production method to record depreciation.The machine produced 15,000 units in 2016,18,000 units in 2017 and 25,000 units in 2018.The machine was sold on December 30,2018 for $350,000.What was the accumulated depreciation at December 31,2016?

• A)$39,000
• B)$40,000
• C)$75,000
• D)$90,000

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Definitions:

Lentils

Edible legumes known for their lens shape, highly nutritious with a rich content of protein, fiber, and minerals like iron and folate.

Soybeans

A type of legume native to East Asia, widely grown for its edible bean which has numerous uses.

Nasogastric Tube

A flexible tube passed through the nose into the stomach, used for feeding or removing stomach contents.

Auscultate

The act of listening to the internal sounds of the body, typically using a stethoscope, as part of a medical examination.