Martin Company Paid $500,000 for a Piece of Equipment

question 18

Multiple Choice

Martin Company paid $500,000 for a piece of equipment.Martin uses straight-line depreciation.Currently the equipment has a balance in the accumulated depreciation account of $200,000.If the asset has no residual value and an estimated life of 10 years,how many years has the asset been depreciated?

• A)1
• B)2
• C)4
• D)6

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Definitions:

Squamous Cell Carcinoma

A type of cancer that arises from flat cells of the epidermis, often associated with sun exposure, and is characterized by its ability to spread to other parts of the body.

Loose Connective Tissue

A type of connective tissue that holds organs in place and provides support to other tissues while also allowing the passage of nerves and blood vessels through other tissues.

Papillary Layer

The upper layer of the dermis in the skin, containing thin collagen and elastin fibers, which provide nutrients to select layers of the epidermis.

Hypodermis

A layer of tissue directly beneath the skin, consisting of fat and connective tissues that insulate and protect the body.