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:

Components

Individual parts or elements that make up a larger system, machine, or assembly.

Aggregate Plan

A plan that includes forecast levels for families of products of finished goods, inventory, shortages, and changes in the workforce.

Master Production Schedule

A plan for individual commodities to be produced in each time period, serving as a link between production planning and manufacturing.

Lot-For-Lot

A lot-sizing technique that generates exactly what is required to meet the plan.