Farmer Company purchased equipment on January 1, Year 1 for $96,000. The machines are estimated to have a 5-year life and a salvage value of $13,000. The company uses the straight-line method.At the beginning of Year 4, Farmer revised the expected life to eight years. What is the annual amount of depreciation expense for each of the remaining years in the machine's life?
A. $4150
B. $6640
C. $9240
D. $5775
Answer: B
You might also like to view...
If a company is concerned about minimizing its income tax burden, it would use the straight-line depreciation method to accomplish this objective
a. True b. False Indicate whether the statement is true or false
The hierarchical system in society is considered existential in which type of society?
a. small power distance b. individualistic c. collectivist *d. large power distance
Item A has a lead time of 2 weeks and requires two units of Item B and three units of Item C. Item B has a lead time of 4 weeks and Item C has a lead time of 1 week. What should the planning horizon of the MRP be?
A. 2 weeks B. at least 6 weeks C. always less than 6 weeks D. 3 weeks
Given a positive interest rate and a positive cash flow, an annuity due always has a greater present value than an ordinary annuity of the same size and number of cash flows
Indicate whether the statement is true or false.