[The Following Information Applies to the Questions Displayed Below

question 13

Multiple Choice

[The following information applies to the questions displayed below.]

Farmer Company purchased equipment on January 1, Year 1 for $82,000. The machines are estimated to have a 5-year life and a salvage value of $4,000. The company uses the straight-line method.


-At the beginning of Year 4,Farmer revised the expected life to eight years.What is the annual amount of depreciation expense for each of the remaining years in the machine's life?

• A)$6,240
• B)$4,400
• C)$7,040
• D)$3,900

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Definitions:

Invention

The creation of a new device, process, or method, often something that has not existed before.

Division of Labor

The allocation of different parts of a manufacturing process or task to different people, based on specialized skills, to increase efficiency.

Pre-agriculture Societies

Human communities that existed before the development of farming and agricultural practices, typically relying on hunting, gathering, and fishing for subsistence.

Jobs

Positions of employment where individuals are hired to perform specific duties in exchange for compensation.