On January 1,2016,Martini,Inc

question 149

Multiple Choice

On January 1,2016,Martini,Inc.acquired a machine for $1,030,000.The estimated useful life of the asset is five years.Residual value at the end of five years is estimated to be $87,000.What is the book value of the machine at the end of 2017 if the company uses the straight-line method of depreciation?

• A)$618,000
• B)$652,800
• C)$565,800
• D)$617,996

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Definitions:

Trepanning

An ancient medical procedure that involves drilling a hole into the human skull for therapeutic or surgical purposes.

Intracranial Pressure

The pressure within the skull that influences the functioning of the brain, important in conditions like head injuries.

Oral Consumption

The process of taking substances, such as food or medicine, into the body through the mouth.

Lethargic

Characterized by laziness or a lack of energy and enthusiasm.