The Samuel Company Uses the Straight-Line Method to Depreciate Its

question 93

Multiple Choice

The Samuel Company uses the straight-line method to depreciate its equipment. On May 1, 2014, the company purchased some equipment for $224,000. The equipment is estimated to have a useful life of ten years and a salvage value of $20,000. If depreciation is to be recorded for each month the equipment is owned, how much depreciation expense should Samuel record for the equipment in the adjusting entry on December 31, 2014?

• A) $20,400
• B) $18,500
• C) $13,600
• D) $ 8,500

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Definitions:

Olfactory Pathway

The neural pathway that conveys sensory information related to smell from the nasal cavity to the brain.

Glomeruli

Small, spherical structures in the kidneys that are responsible for filtering blood and starting the process of urine formation.

Pyriform Cortex

A region of the brain involved in the processing of olfactory (smell) information.

Chemosignals

Chemical signals that convey information between organisms; they play key roles in many biological processes and behaviors.