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

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Definitions:

Net Value

The difference between the total benefits and total costs associated with an economic activity or transaction.

Long Run Deficit

A fiscal situation where a government consistently spends more than it earns over an extended period, leading to sustained budget deficits.

Nominal Wages

The wages that are paid to employees without adjustment for inflation, representing the dollar amount of the pay before considering purchasing power.