Seall-Test Ltd

question 126

Multiple Choice

Seall-Test Ltd. 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 depreciation expense for 2020?

• A)$50,000
• B)$60,000
• C)$96,000
• D)$120,000

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Definitions:

Pie Chart

A graphical representation of data in the form of a circle divided into sectors, where each sector's angle and area proportionally represent a category's contribution to the total.

Correlation Coefficient

A statistical measure that calculates the strength and direction of a linear relationship between two variables on a scatterplot.

Correlation

A statistical measure that indicates the extent to which two or more variables fluctuate together.

Engine Size

A measure of the volume of the combustion chambers in a vehicle's engine, typically expressed in liters or cubic centimeters, often linked to the power output.