On January 1,2016,Martini,Inc

question 150

Multiple Choice

On January 1,2016,Martini,Inc.acquired a machine for $1,050,000.The estimated useful life of the asset is five years.Residual value at the end of five years is estimated to be $100,000.What is the book value of the machine at the end of 2017 if the company uses the straight-line method of depreciation?

• A)$630,000
• B)$670,000
• C)$570,000
• D)$629,996

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Definitions:

Taproot

A primary root that grows vertically downward and gives off small lateral roots.

Nutritive Tissue

Tissue within an organism that provides essential nutrients for growth and development.

Pine Seed

The seed of a pine tree, often known as a pine nut, used for reproduction of the species and as a food source for wildlife and humans.

Triploid

An organism or cell having three sets of chromosomes instead of the usual two.