DeLito Tax Planning Service Bought Production Equipment for $11,400 on January

question 12

Multiple Choice

DeLito Tax Planning Service bought production equipment for $11,400 on January 1,2017.It has an estimated useful life of five years and zero residual value.DeLito uses the straight-line method to calculate depreciation and records depreciation expense in the books at the end of every month.As of June 30,2017,the book value of this equipment shown on its balance sheet will be ________.

• A)$10,260
• B)$11,400
• C)$12,540
• D)$11,590

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Definitions:

Surface Tension

The cohesive force at the surface of a fluid that causes it to behave as an elastic sheet, minimizing its surface area.

Body Fluids

Liquids that are found within the bodies of living organisms, including blood, saliva, and cerebrospinal fluid.

Buffer

A chemical substance that helps maintain a stable pH in a solution by neutralizing small amounts of added acid or base.

pH

A scale used to specify the acidity or basicity of an aqueous solution, with low values indicating acidity and high values, basicity.