On January 1 Murphy Company Acquired a Machine with a Four-Year

question 25

Multiple Choice

On January 1 Murphy Company acquired a machine with a four-year useful life.Murphy estimates the salvage value of the machine will be equal to ten percent of the acquisition cost.The company is debating between using either the double-declining-balance method or the sum-of-the-years'-digits method of depreciation.Comparing the depreciation expense for the first two years computed using these methods,the depreciation expense for the double-declining-balance method (compared to the sum-of-the-years'-digits method) will match which of the patterns shown below? First Second
Year Year

• A) Lower Lower
• B) Lower Higher
• C) Higher Lower
• D) Higher Higher

---

Definitions:

Artifacts

Objects made or used by humans, typically of cultural or historical interest.

Operating Routines

are established methods and procedures followed by an organization in its day-to-day operations.

Values

Fundamental beliefs or ideals that serve as guiding principles for behavior and decision-making.

Result-Oriented Vision

A strategic approach focusing on achieving specific outcomes and goals.