A Machine Costing $57,000 with a 6-Year Life and $54,000

question 140

Multiple Choice

A machine costing $57,000 with a 6-year life and $54,000 depreciable cost was purchased January 1. Compute the yearly depreciation expense using straight-line depreciation.

• A) $9,500
• B) $9,000
• C) $10,800
• D) $11,400

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Definitions:

Condition

A stipulation in a contract that must be met for the contract to be legally binding, or an event whose occurrence or non-occurrence affects the validity of the contract.

Warranty

A guarantee, provided by a seller or manufacturer, assuring the quality, performance, or lifespan of a product, often implying repair or replacement if specifications are not met.

Tender Of Performance

An unsuccessful (because it is rejected or prevented by the other party) attempt by one of the parties to a contract to perform its obligations under the contract.

Breach Of Contract

The violation of any agreed-upon terms or conditions in a binding contract, which can lead to legal consequences for the party in breach.