On January 1,2013,Zane Manufacturing Company Purchased a Machine for $40,000

question 71

Multiple Choice

On January 1,2013,Zane Manufacturing Company purchased a machine for $40,000.The company expects to use the machine a total of 24,000 hours over the next 6 years.The estimated sales price of the machine at the end of 6 years is $4,000.The company used the machine 8,000 hours in 2013 and 12,000 in 2014.
-What is depreciation expense for 2014 if the company uses double-declining-balance depreciation?

• A) $13,333
• B) $8,889
• C) $6,000
• D) $10,000

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Definitions:

Rights to Collateral

Legal entitlements of a secured creditor to seize and sell the collateral if the debtor fails to fulfill the obligations of the loan or debt agreement.

Loan Due

The date by which a borrower is expected to repay the borrowed amount in full to the lender.

Rights in Bankruptcy

Legal protections and claims a debtor or creditor has during the bankruptcy process, including claims to assets and discharge of debts.

Homestead Exemption

A legal provision that protects a portion of a homeowner's principal residence from creditors and reduces property tax.