Ace Company Purchased a Machine Valued at $320,000 on August

question 158

Multiple Choice

Ace company purchased a machine valued at $320,000 on August 1.The equipment has an estimated useful life of five years or 2.5 million units.The equipment is estimated to have a salvage value of $8,200.Assuming the double declining balance method of depreciation,what is the amount of depreciation expense that needs to be recorded at the end of the second year if 710,000 units were produced?

• A) $128,000
• B)$62,360
• C)$90,880
• D)$88,750
• E)$106,667

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Definitions:

Equals

Signifies that two quantities or expressions have the same value.

Final Value

Refers to the value of an investment or payment at the end of a specified period, accounting for interest or growth.

Fraction

A mathematical expression that represents the division of one quantity by another.

Value

The financial worth of an asset, service, or company based on revenue, assets, earnings, market cap, and other factors.