On June 1,Aaron Company Purchased Equipment at a Cost of $120,000

question 34

Multiple Choice

On June 1,Aaron Company purchased equipment at a cost of $120,000 that has a depreciable cost of $90,000 and an estimated useful life of 3 years and 30,000 hours. Using straight-line depreciation,calculate depreciation expense for the final partial year of service.

• A)$12,500
• B)$17,500
• C)$40,000
• D)$30,000

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Definitions:

Personal Property

Movable assets owned by an individual, as opposed to real property like land or buildings.

Debtor

An individual or entity that owes money or is legally obligated to make payments to another party.

UCC

Stands for the Uniform Commercial Code, a comprehensive set of laws governing commercial transactions in the United States.

Default

Failure to make payments on a loan.