In January,Fanning Corporation Entered into a Contract to Acquire a New

question 31

Multiple Choice

In January,Fanning Corporation entered into a contract to acquire a new machine for its factory.The machine,which had a cash price of $400,000,was paid for as follows:

Prior to the machine's use,installation costs of $10,000 were incurred.The machine has an estimated useful life of ten years and an estimated salvage value of $10,000.What should Hunter record as depreciation expense for the first year under the straight-line method?

• A)$38,100
• B)$39,100
• C)$40,000
• D)$41,000

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Definitions:

Printz v. United States

A United States Supreme Court case that decided it was unconstitutional for the federal government to command states' law enforcement officers to enforce federal laws.

Gibbons v. Ogden

A landmark 1824 U.S. Supreme Court case that ruled the power to regulate interstate commerce was granted to Congress by the Commerce Clause of the Constitution.

Interstate Commerce

The exchange, movement, or transfer of goods and services across state lines within the United States.

National Government Supremacy

The principle that the federal or national government has predominant power and authority over regional or state governments, especially in legislative matters.