On January 2,2015,Kornis Corporation Acquired Equipment for $300,000

question 166

Multiple Choice

On January 2,2015,Kornis Corporation acquired equipment for $300,000.The estimated life of the equipment is 5 years or 40,000 hours.The estimated residual value is $20,000.What is the balance in Accumulated Depreciation on December 31,2015,if Kornis Corporation uses the double-declining-balance method of depreciation?

• A)$56,000
• B)$60,000
• C)$112,000
• D)$120,000

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Definitions:

Water

is a transparent, tasteless, odorless, and nearly colorless chemical substance that is the main constituent of Earth's hydrosphere and the fluids of most living organisms.

Marketable Title

Title for property to which the seller has legal title and against which there are no liens or restrictions of which the buyer is not aware.

Lien

A claim to property.

Real Property

Land and anything permanently attached to it, including buildings and natural resources.