Castle Rock Owns a Machine That It Purchased on Jan

question 87

Multiple Choice

Castle Rock owns a machine that it purchased on Jan 1, 2019 for $400,000. The machine had an estimated useful life of 10 years with a production capacity for 80,000 units and was expected to have no residual value. The company uses the units-of-production method to record depreciation. The machine produced 15,000 units in 2019, 18,000 units in 2020 and 25,000 units in 2021. The machine was sold on December 31, 2021 for $350,000. What was the depreciation expense for 2021?

• A)$39,000
• B)$40,000
• C)$90,000
• D)$125,000

---

Definitions:

Vicarious Liability

A legal principle that holds a party responsible for the actions of another, based on the relationship between the two parties.

Assigned Liability

The process or outcome of legally transferring responsibility for a debt or obligation from one party to another.

Fault

A legal term referring to responsibility for a mistake or wrongdoing that results in harm or damage.

Power of Attorney

A legal document authorizing one person to act on another's behalf in legal or financial matters.