A Machine Has a Cost of $24,000, a Residual Value

question 46

Multiple Choice

A machine has a cost of $24,000, a residual value of $6,000, and an estimated three-year life. If depreciation in the second year was $2,000, which depreciation method was used?

• A) straight-line
• B) double declining-balance
• C) units of production
• D) cannot tell from information given

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Definitions:

Consequences

The results or effects that follow from specific actions or decisions.

Obligations

Duties or commitments that an individual or organization is bound to by law, contract, or moral responsibility.

Honesty

The quality of being truthful and transparent in actions, communications, and transactions.

Property Tax Purposes

The use of property evaluation to determine the amount owed by property owners to municipal or county governments as property tax.