On January 2, 2012, McNally's Extra Corporation Acquired Equipment for $120,000

question 121

Multiple Choice

On January 2, 2012, McNally's Extra Corporation acquired equipment for $120,000. The estimated life of the equipment is 5 years or 20,000 hours. The estimated residual value is $20,000. What is the balance in Accumulated Depreciation on December 31, 2013, if McNally's Extra Corporation uses the double-declining-balance method of depreciation?

• A) $23,200
• B) $36,000
• C) $43,200
• D) $76,800

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Definitions:

Hernia

The protrusion of an organ through the wall that usually contains it, such as a hiatal or inguinal hernia.

Muscle

Tissue in the body composed of fibers capable of contracting to produce movement or maintain the posture of the body.

Meningitis

An inflammation of the protective membranes covering the brain and spinal cord, potentially caused by infection (viral, bacterial, or fungal).

Spinal Cord

The long, thin, tubular structure composed of nervous tissue that extends from the brainstem down the back, enabling communication between the brain and the body.