Seally Corp

question 8

Multiple Choice

Seally Corp.owns a machine that it purchased on Jan 1,2016 for $600,000.The machine had an estimated useful life of 10 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 2017?

• A)$50,000
• B)$60,000
• C)$80,000
• D)$96,000

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Definitions:

Options Pricing Model

Mathematical models used to calculate the theoretical value of options contracts based on various factors like the underlying asset's price, strike price, and time to expiration.

Performance-Based Stock Option Plan

A stock option program that ties the vesting or value of options to the achievement of specific performance targets, aligning employees' interests with corporate goals.

Compensation Expense

The total cost incurred by a company to compensate its employees, including wages, benefits, bonuses, and stock options.

Sales Increase

An upward trend in the volume or value of products or services sold by a business within a specific period, indicating potential growth or market acceptance.