New Equipment Was Purchased on January 1 for $142,000

question 12

Multiple Choice

New equipment was purchased on January 1 for $142,000.It has a salvage value of $28,000 and a useful life of 8 years.To the nearest dollar,how much will the depreciation expense for the equipment be for the first year using the straight-line method?

• A)$1,188
• B)$17,750
• C)$1,479
• D)$14,250

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Definitions:

Suit Against

This term generally describes the initiation of legal action or litigation by one party against another.

Common Carrier

A business or service that offers to transport goods or people for anyone willing to pay, under a regulatory or legal obligation to do so without discrimination.

Delivery Contract

A legal agreement specifying the terms of delivery for goods or services from a seller to a buyer.

Goods-In-Bailment

A legal term referring to the temporary transfer of possession of personal property by one party to another, with the intent that the property will be returned.