B Company Switched from the Sum-Of-The-Years-Digits Depreciation Method to Straight-Line

question 113

Multiple Choice

B Company switched from the sum-of-the-years-digits depreciation method to straight-line depreciation in 2016.The change affects machinery purchased at the beginning of 2014 at a cost of $72,000.The machinery has an estimated life of five years and an estimated residual value of $3,600.What is B's 2016 depreciation expense?

• A)$ 9,120.
• B)$13,680.
• C)$15,840.
• D)$19,200.

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Definitions:

Chemotaxis

Attraction of living protoplasm (cells) to chemical stimuli.

Vasodilation

Increased diameter of blood vessels.

Histamine

A compound released by cells in response to injury and in allergic and inflammatory reactions, causing contraction of smooth muscle and dilation of capillaries.

Prostaglandins

A group of lipid compounds that are derived enzymatically from fatty acids and have important functions in the body, including in inflammation and as hormone-like messengers.