Stiller Company Owns a Machine That Was Bought on January

question 52

Multiple Choice

Stiller Company owns a machine that was bought on January 2,2011,for $376,000.The machine was estimated to have a useful life of five years and a salvage value of $24,000.Stiller uses the sum-of-the-years'-digits method of depreciation.At the beginning of 2014,Stiller determined that the useful life of the machine should have been four years and the salvage value $35,200.For the year 2014,Stiller should record depreciation expense on this machine of

• A) $19,200.
• B) $44,400.
• C) $59,200.
• D) $70,400.

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Definitions:

Business Cycle

The fluctuations in economic activity that an economy experiences over a period of time, characterized by periods of expansion and recession.

Inflation Rates

The rate at which the general level of prices for goods and services is rising, indicating the purchasing power of currency is falling.

Mean Absolute Deviation

A statistical measure of the average absolute deviations from a dataset's mean, indicating variability within the data.

Actual Sales

The real or recorded number of sales transactions completed within a given period.