CeeMore Owns a Machine That It Purchased on Jan 1

question 94

Multiple Choice

CeeMore owns a machine that it purchased on Jan 1, 2010 for $400,000. The machine had an estimated useful life of 10 years and a production capacity of 80,000 units and was expected to have no residual value. The company uses the units-of-production method to record depreciation. The machine produced 15,000 units in 2010, 18,000 units in 2011 and 25,000 units in 2012. The machine was sold on December 31, 2012 for $350,000. What was the accumulated depreciation at the end of 2011?

• A)$75,000
• B)$80,000
• C)$90,000
• D)$165,000

Describe the mechanisms of nitrogenous waste excretion across different vertebrates.

Recognize the roles of hormones in kidney function and regulation.

Identify the mechanisms of action and the effects of angiotensin and atrial natriuretic peptide (ANP) on kidney function.

Understand the criteria for determining significant influence over an investee.

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Definitions:

Financial Leverage

The use of borrowed money (debt) to amplify the potential return on investment.

Break-even EBIT

The level of earnings before interest and taxes (EBIT) at which a company neither makes a profit nor incurs a loss.

Target Capital Structure

Refers to the mix of debt, preferred stock, and common equity that a company aims to hold to fund its operations and maximize its value.

WACC

Weighted Average Cost of Capital - a calculation of a firm's cost of capital in which each category of capital is proportionately weighted.