The Asset Section of the January 1, 20X7 Balance Sheet

question 66

Multiple Choice

The asset section of the January 1, 20X7 balance sheet of Murphy Company includes a machine, which was acquired on January 1, 20X1. The machine's original cost was $1,000,000, and the estimated life was determined to be 10 years. The estimated residual value was zero, and the straight-line method of depreciation was chosen.
-The book value of the machine as of January 1, 20X7 is

• A) $1,000,000.
• B) $900,000.
• C) $500,000.
• D) $400,000.

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Definitions:

Mental Representation

The mental imagery or symbols used to understand and process information about the world around.

College

An institution of higher learning that offers undergraduate and postgraduate degrees in various fields.

Biological Constraints

Limitations on learning that are due to the inherited characteristics of an organism.

Natural Selection

The principle that inherited traits that better enable an organism to survive and reproduce in a particular environment will (in competition with other trait variations) most likely be passed on to succeeding generations.