In January,Fanning Corporation Entered into a Contract to Acquire a New

question 14

Multiple Choice

In January,Fanning Corporation entered into a contract to acquire a new machine for its factory.The machine,which had a cash price of $400,000,was paid for as follows: Prior to the machine's use,installation costs of $10,000 were incurred.The machine has an estimated useful life of ten years and an estimated salvage value of $10,000.What should Hunter record as depreciation expense for the first year under the straight-line method?

• A) $38,100
• B) $39,100
• C) $40,000
• D) $41,000

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Definitions:

Fossils

Remains or impressions of ancient organisms preserved in rock or other geological materials.

Impact Craters

Circular depressions on the surface of planets, moons, or other celestial bodies, formed by the high-speed impact of a meteoroid, asteroid, or comet.

Point Bar

A depositional feature made of sand and gravel that forms on the inside bend of streams and rivers.

Erosional Features

Landforms created by the removal of soil, rock, or sediment through water, wind, ice, or other natural forces.