Martin Company Purchases a Machine at the Beginning of the Year

question 2

Multiple Choice

Martin Company purchases a machine at the beginning of the year at a cost of $60,000. The machine is depreciated using the straight-line method. The machine's useful life is estimated to be 4 years with a $5,000 salvage value.
- The book value of the machine at the end of year 4 is:

• A) $13,750.
• B) $0.
• C) $55,000.
• D) $30,000.
• E) $5,000.

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Definitions:

Grounding Conductor

The conductor that is used to force a piece of equipment to exist at ground potential. It is generally green in color or bare.

Appliance Circuit

The electrical circuit dedicated to supplying power to an individual appliance, ensuring safety and reliability in its operation.

Neutral Conductors

Conductors connected to the neutral point in a circuit, carrying current only under unbalanced load conditions.

Open Circuit

A break in an electrical circuit preventing current from flowing.