Bricker Enterprises Purchased a Machine for $100,000 on October 1,2012

question 2

Multiple Choice

Bricker Enterprises purchased a machine for $100,000 on October 1,2012.The estimated service life is ten years with a $10,000 residual value.Bricker records partial-year depreciation based on the number of months in service.Depreciation expense for 2012,using straight-line,is:

• A)$1,500.
• B)$7,500.
• C)$2,250.
• D)$2,500.

---

Definitions:

Net Sales

The revenue from sales of goods or services after subtracting returns, allowances for damaged or missing goods, and discounts.

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time.

Selling Price

The amount of money for which a product or service is sold to the customer.

Distribution Costs

Expenses associated with delivering goods from production sites to points of sale and ultimately to customers.