The Method of Depreciation Was Changed from the Double-Declining-Balance Method

question 99

Multiple Choice

The method of depreciation was changed from the double-declining-balance method to the straight-line method in fiscal 2022. A machine was purchased on January 1, 2020, at a cost of $150,000. The machine has an estimated useful life of 10 years and a residual value of $9,000. What was booked as depreciation expense in fiscal 2020?

• A)$14,100
• B)$15,900
• C)$24,000
• D)$30,000

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Definitions:

Supplies

Goods and materials required for the operation of a business or for completing a particular task, project, or service.

Foreign Corrupt Practices Act

A U.S. law aimed at preventing American companies and their agents from engaging in bribery and other unethical practices abroad.

Unlawful Payments

Transactions or payments made that are illegal or not sanctioned by law, often involving bribery or corruption.

Foreign Official

An individual who holds a position of authority or office in a government or international agency outside of one's own country.