Lex Soaps Purchased a Machine on January 1,2013,for $18,000 Cash

question 13

Multiple Choice

Lex Soaps purchased a machine on January 1,2013,for $18,000 cash.The machine has an estimated useful life of four years and a salvage value of $4,700.Lex uses the double-declining-balance method of depreciation for all its assets.What will be the machine's book value as of December 31,2014?

• A) $5,100
• B) $4,700
• C) $4,500
• D) $4,300

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Definitions:

Carbohydrates

A macronutrient group consisting of sugars, starches, and fibers found in fruits, grains, vegetables, and milk products, essential for providing energy to the body.

Pancreatic Amylase

An enzyme that digests carbohydrates.

Pepsinogen

Substance that is secreted by the chief cells in the lining of the stomach and becomes pepsin in the presence of acid.

Chief Cells

Cells in the lining of the stomach that secrete pepsinogen.