Easter Corp

question 24

Multiple Choice

Easter Corp. owns a machine that it purchased on Jan 1, 2019 for $600,000. The machine had an estimated useful life of 10 years and an estimated residual value of $100,000. The company uses the declining balance method with a rate of 20%. The machine was sold on December 31, 2021 for $140,000. What was the accumulated depreciation at December 31, 2020?

• A)$100,000
• B)$120,000
• C)$180,000
• D)$216,000

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Definitions:

Short-Term Financial Gains

Refers to the profits or income generated from investments or business activities within a period of less than one year.

Online Retailer

A business that sells goods or services over the internet, offering products directly to consumers through digital platforms.

Price Continuum

The range of prices across different products or services in a market, from the lowest to the highest, reflecting the variety of value propositions and customer segments.

Bell Curve

A graphical depiction of a normal probability distribution, characterized by its bell-shaped curve, indicating a range and frequency of values.