Compatibility Services Acquired an $80,000 Machine on January 1,20X3

question 16

Multiple Choice

Compatibility Services acquired an $80,000 machine on January 1,20X3.The machine is estimated to have a useful life of 8 years,and a residual value of $4,000.For units-of-production depreciation purposes,the machine is expected to produce 400,000 units.If Compatibility Services uses units-of-production depreciation,and the company produces 40,000 units in 20X3; 60,000 units in 20X4; 50,000 units in 20X5; and 30,000 units in 20X6; what is the net book value of the machine at December 31,20X6?

• A)$40,000
• B)$48,000
• C)$42,000
• D)$45,800
• E)$49,600

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Definitions:

Adjourning

The final stage of group development where the group completes its task, dissolves, and members move on to other activities or groups.

Bruce Tuckman

An American psychological researcher known for his model on the stages of group development.

Reciprocal

Involving mutual actions or relationships where two parties give and take equivalently.

Tuckman's Model

A theory of group development presented by Bruce Tuckman, outlining stages teams typically go through: forming, storming, norming, performing, and adjourning.