Dugger Excavating Bought a Machine for $24,000 on January 1,20X3,with

question 74

Multiple Choice

Dugger Excavating bought a machine for $24,000 on January 1,20X3,with a useful life of 5 years and a salvage value of $4,000.At the beginning of 20X4,Dugger finds the residual value will be zero. Assuming Dugger employs double-declining-balance depreciation,what will be the depreciation expense in 20X4?

• A)$5,250
• B)$8,000
• C)$4,160
• D)$9,600
• E)$5,760

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Definitions:

Stockholders' Equity

Funds owned by the shareholders of a company, calculated as the company's total assets minus its total liabilities, representing ownership interest in the company.

Common Stock

A type of equity security that represents ownership in a corporation, giving holders voting rights and a share in the company’s profits via dividends.

Authorized Shares

The maximum number of shares that a corporation is legally allowed to issue, as specified in its articles of incorporation.

Reacquired Shares

Shares that a company buys back from its shareholders, reducing the amount of outstanding stock on the market.