Ace Company Purchased a Machine Valued at $320,000 on August

question 78

Multiple Choice

Ace Company purchased a machine valued at $320,000 on August 1.The equipment has an estimated useful life of five years or 2.5 million units.The equipment is estimated to have a salvage value of $8,200.Assuming the straight-line method of depreciation,what is the amount of depreciation expense that needs to be recorded at the end of the first year if 710,000 units were produced?

• A) $64,000
• B)$76,800
• C)$62,360
• D)$25,983
• E)$106,667

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Definitions:

Major Components

The primary or most important parts of a system, machine, or vehicle that are essential for its operation.

Post-Secondary Schools

Educational institutions offering learning and training after high school, including colleges and universities.

Certified Technician

A professional who has received official recognition and certification for their skills and knowledge in a specific technical field.

ASE Certified

A certification from the National Institute for Automotive Service Excellence indicating that an individual has met specific criteria in automotive repair and service.