The Roger Company leased a machine at the beginning of 2016. The machine was properly capitalized by Roger at $73,735. A lease payment of $16,563 is due at the end of each year. The expected life of the machine is seven years, and the term of the lease is five years. At the beginning of 2021, the machine will be returned to the lessor. Both Roger and the lessor use the straight-line method of
depreciation. What amount of depreciation expense should Roger record in 2016 for the machine (round calculations up to the nearest dollar)?
A) $14,600
B) $14,747
C) $16,563
D) $17,000
B
You might also like to view...
Which of the following statements is true of a niche strategy?
a. A niche strategy is most suitable for firms that have achieved economies of scale. b. A niche strategy requires business firms to reduce after-purchase service options. c. A niche strategy involves removing extra frills from products. d. A niche strategy is ideal for small companies with limited resources.
What is the yield to maturity of a 5-year bond?
A. 4.6%
B. 4.9%
C. 5.2%
D. 5.5%
E. 5.8%
The management of organizational politics MOST OFTEN falls to ________
A) the CEO B) the legal department C) the public relations department D) the human resources department
Explain the difference between a leader and a manager
Please provide the best answer for the statement.