On January 1,a Machine with a Useful Life of Five

question 192

Multiple Choice

On January 1,a machine with a useful life of five years and a residual value of $6,000 is purchased for $30,000.What is the depreciation expense in year 2 using the double-declining-balance method?

• A) $7,200
• B) $9,600
• C) $8,160
• D) $12,000

---

Definitions:

Vertical Intercept

The point where a line or curve meets the vertical axis (usually the y-axis) on a graph.

Independent Variable

A variable that is manipulated or controlled in an experiment to test its effect on a dependent variable.

Dependent Variable

In an experiment or study, the variable that is being tested and measured, which changes in response to the independent variable.

Upsloping Line

A line on a graph that shows an increase in the value of a variable on the vertical axis as the value of a variable on the horizontal axis increases, typically seen in supply curves.