Minor Company Installs a Machine in Its Factory at the Beginning

question 5

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

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Definitions:

Regulations

Rules or directives made and maintained by an authority to regulate behavior or achieve compliance.

Organization

A group of people who work together in an organized manner to achieve common goals and objectives.

Functional Structures

An organizational framework where departments are formed based on the functions they perform within the company, such as marketing, finance, or production.

Mechanistic

Describing an organization or approach that is highly structured and focuses on efficiency and predictability, often at the expense of flexibility.