Base-Forward Owns a Machine That It Purchased on Jan 1,2016

question 110

Multiple Choice

Base-Forward 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 depreciation expense for 2018?

• A)$292,800
• B)$76,800
• C)$60,000
• D)$50,000

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Definitions:

Lithium

A medication commonly used to treat and prevent manic episodes in people with bipolar disorder.

Suicidality

The risk or tendency toward having suicidal thoughts, making suicidal plans, or attempting suicide.

Toxic Dose

The amount of a substance that causes harmful effects to an organism, potentially leading to poisoning or death.

Cyclothymic Disorder

Milder but more chronic form of bipolar disorder that consists of alternation between hypomanic episodes and mild depressive episodes over a period of at least 2 years.