Minor Company Installs a Machine in Its Factory at the Beginning

question 37

Multiple Choice

Minor Company installs a machine in its factory at the beginning of the year at a cost of $135,000.The machine's useful life is estimated to be 5 years,or 300,000 units of product,with a $15,000 salvage value.During its first year,the machine produces 64,500 units of product.Determine the machines' first year depreciation under the straight-line method.

• A)$27,000.
• B)$29,025.
• C)$25,800.
• D)$23,779.
• E)$24,000.

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Definitions:

Manufacture

The process of producing goods and products in large quantities using machinery, labor, and other resources.

Chemical Composition

The identity and proportion of the elements or compounds that make up a substance.

Trademark

A sign, term, or expression officially recognized or adopted through use to signify a corporation or merchandise.

Brand

A name, term, symbol, design, or combination of these elements that clearly identifies and differentiates your products from those of your competitors.