[The Following Information Applies to the Questions Displayed Below

question 72

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.


-If the original expected life remained the same (i.e. ,5-years) ,but at the beginning of Year 4,the salvage value was revised to $8,000,what is the annual depreciation expense for each of the remaining years?

• A)$5,440
• B)$27,200
• C)$13,600
• D)$14,800

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Definitions:

Infectious Diseases

Conditions caused by pathogens such as bacteria, viruses, fungi, or parasites that can spread directly or indirectly from person to person.

Life Expectancy

The amount of time a person can actually be expected to live in a given setting.

Population Group

a specific segment of the population defined by shared characteristics such as age, ethnicity, or health status.

Physiological Processes

Functions and activities carried out by living organisms to maintain life, including breathing, circulation, digestion, and reproduction.