Hotel-R-Us Owns a Machine That It Purchased on Jan 1

question 32

Multiple Choice

Hotel-R-Us owns a machine that it purchased on Jan 1, 2019 for $600,000. The machine had an estimated useful life of 5 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, 2021?

• A)$292,800
• B)$180,000
• C)$150,000
• D)$76,800

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Definitions:

Unconditioned Response

A natural, automatic reaction to a stimulus that occurs without prior learning or conditioning.

Salivation Elicited

The reflexive process of producing saliva in the mouth, often triggered by the anticipation of food, through both psychological and physiological responses.

Unconditioned Stimulus

A stimulus that naturally triggers a response without prior learning or conditioning.

Lime Margaritas

A cocktail made with lime juice, tequila, and triple sec, often served with salt on the rim of the glass.