Buggy Company Purchased Equipment on June 3, 2012, for $100,000

question 23

Multiple Choice

Buggy Company purchased equipment on June 3, 2012, for $100,000. The residual value is zero and the estimated life is 10 years. Compute depreciation expense for the year ending December 31, 2012, if the company uses the double-declining method of depreciation.

• A) $10,000
• B) $11,667
• C) $13,337
• D) $20,000

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Definitions:

Violation

The act of disregarding or breaking a rule, agreement, law, or code of conduct.

Serious Injury

An injury that poses a substantial risk of death, causes extreme physical pain, or leads to significant and lasting bodily harm.

Death

The cessation of all biological functions that sustain a living organism, marking the end of its life.

ERISA

The Employee Retirement Income Security Act (ERISA) is a federal law that sets minimum standards for most voluntarily established retirement and health plans in private industry to provide protection for individuals in these plans.