Columbia Manufacturing Corp

question 31

Multiple Choice

Columbia Manufacturing Corp.purchased a new lathe machine for its baseball bat manufacturing plant on January 1.The machine cost $12,000 and is expected to be used in production for 4 years at which time its estimated salvage value will be $2,000.The yearly straight-line depreciation for this asset would be

• A)$2,500
• B)$3,000
• C)$4,000
• D)$12,000
• E)$9,500

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Definitions:

Explicit Memory

A type of long-term memory involving conscious recollection of factual information, previous experiences, and concepts.

Liability

A financial obligation or debt owed by a company to third parties, to be settled through the transfer of assets, provision of services, or other economic benefits.

Low-Quality Earnings

Earnings reported by a company that may not be repeatable, sustainable, or indicative of its operational health, often inflated by accounting gimmicks or one-time items.

Earnings Items

The components that make up the net income of a company, including revenue, expenses, gains, and losses.